Jump in planning permissions for new homes

Figures at highest level since 2007

Alex Johnson
Monday 02 December 2013 07:30 EST
Comments
A 4 bedroom new property for sale for £255,000 in Promenade Row, St Benedict Road, York YO23, on with Your Move
A 4 bedroom new property for sale for £255,000 in Promenade Row, St Benedict Road, York YO23, on with Your Move

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

New figures from the Home Builders Federation show a large increase in the number of planning permissions granted for new homes between July and September this year, up 31% year-on-year to 44,251 which also represents a rise of 19% on the previous three months.

This is the highest figure for a three month period since 2007 and the 826 sites for the permissions is at its highest since 2008.

“This is the latest indicator to show how the industry is looking to quickly increase output," said Stewart Baseley, Executive Chairman of the HBF. "We have already seen evidence of a rise in new homes starts and these figures show the industry’s intent to increase and sustain that over the next few years. Developers are building out current sites more quickly and are now looking to invest in new sites and begin development sooner than previously planned.

“The figures reflect the positive principles of the new planning system. They are also a clear demonstration that builders are looking to increase supply as a result of increased market confidence generated by the Help to Buy Equity loan scheme."

However, Duncan Kreeger, director at West One Loans, said that between May and September the government’s Help to Buy equity guarantee scheme had provided only one quarter of the lending made possible by alternative forms of finance, £208 million as opposed to £878 million.

"So far, the first phase of Help to Buy has only helped a few thousand cases of first-time buyers struggling to get onto the property ladder. The real elephant in the room is the sheer lack of homes available on the market," said Kreeger. "It’s becoming increasingly obvious that heating up the pressure cooker of consumer demand will do little to ease the worsening bottleneck of supply.

"But while those in the property industry are desperate to tackle the supply shortage, the real barrier is a lack of finance to create more homes. Conversions, renovations and new developments are all vital in the struggle to keep up with demand. But while mainstream finance is slipping behind, alternative finance is making it easier to find the backing for schemes that can make a solid difference on the ground. Short-term secured loans are often the best way for property professionals to bring these projects to life."

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in