Encouraging new data has show that the number of planning permissions for new homes in England rose during the last year.
According to the latest housing pipeline report from HBF and Glenigan, planning permissions for 255,032 new homes were granted in 2015. This was 57% greater than the 162,204 recorded in 2009.
Increases
Permissions granted in the final three months of 2015 were 13% up on the same quarter in 2014, standing at 74,759. There have been steady rises in permissions over recent years, with housing supply also rising markedly during the last 24 months.
In excess of 180,000 new homes were added to the housing stock list in 2014/15, a rise of 22% year-on-year.
However, many of the permissions noted in the report still have problems to overcome before building work can be started. The industry has long called for the Government to simplify the planning process and make sure local authorities have the capability to deal with the volume of new applications.
These figures show that supply of houses in the future is promising.
Planning permission numbers highest since 2009
Soar in supply?
Stewart Baseley, Executive Chairman of the HBF, said, ‘the number of planning applications now being submitted demonstrates the commitment of the industry to deliver further increases in housing supply. The past two years have seen huge increases in house building levels, with housing supply in England surpassing 180,000 homes per year in 2014-15, up 22% on the previous year. Whilst the increase in the number of permissions is welcome-and a strong indicator of future supply-many still have to navigate the complexities of the planning system. This is a further sign that house builders continue to step up investment in future housing supply but we need to see these permissions being processed to the stage where we can get onto site and start building more quickly and really start to meet demand for housing.’[1]
Allan Willen, Economics Director and Head of Business Market Intelligence at Glenigan added, ‘The strong rise in planning approvals during the closing months of 2015, driven by an increase in the number of private housing units approved, bodes well for housebuilding activity during the current year. The expanded development pipeline will help housebuilders to meet any strengthening in demand from house buyers. Furthermore the rise marked rise in approvals in the Midlands and North of England last year demonstrates that the recovery in housing market activity is becoming more established across the country.’[1]
[1] http://www.propertyreporter.co.uk/property/planning-permissions-at-highest-levels-for-8-years.html