New Home Planning Permits in Short Supply
According to the latest HBF Housing Pipeline report, planning approvals for new home s in the UK fell by another 10% last year
In the period July to September, approval was only granted for 32,928 homes units as against 36,411 for the same period in 2010. However, according to Glenigan, who produced the report for the Home Builders Federation, it did increase by 13% in quarter 2.
In the same period the number of approvals for social housing also fell by a massive 58%
Half the Permits of 5 year ago
Overall the quarterly average of number of permits granted in 2011 was only 33,280. In 2010 it was 38,528. But 5 years ago it was almost double the figure at 65,900.
Reflecting the concerns of house builders, aspiring home owners and social landlords on this dire position Stewart Baseley, executive chair of the HBF commented that
"These figures demonstrate clearly why government must stand firm and deliver a robust planning system that provides enough land to meet the nation's housing needs. Its recent housing strategy contained some very positive measures, but, if they are to bear fruit, the planning system must be fit for purpose."
Demand Outstrips Supply nearly 2.5:1
Meanwhile, the UK Government’s own calculations estimate that the number of households throughout Great Britain is now increasing at around 232,000 each year
House Price Rises Inevitable
Such shortgae of land with development aprovals can only mean that land prices will remain high - and no doubt get higher, especially for land in particularly desirable locations.
And that can only mean one thing - house prices will inevitably go higher.