The Home Builders Federation (HBF) reveals a troubling decline in planning permissions for new homes in Great Britain, highlighting potential implications for the housing market.
- A significant drop in housing site approvals has been reported for the year ending March 2024, marking the lowest since 2006.
- Quarterly data also reflects substantial decreases, with London and other regions facing sharp declines.
- HBF attributes these numbers to changes in the planning system and emphasises urgent action is needed.
- The Federation stresses that government intervention is crucial to reversing this worrying trend and meeting housing demands.
The Home Builders Federation (HBF) has presented alarming findings regarding the current state of planning permissions for new homes and sites across Great Britain. Their Housing Pipeline Report, leveraging data from Glenigan, underscores a marked decline in housing site approvals over the 12 months leading up to March 2024. These findings indicate the fewest consents for new housing sites since records began in 2006, even surpassing the low levels seen during the immediate aftermath of the 2008/09 global financial crisis.
Planning permissions serve as a vital predictor for future housing supply levels. As such, the HBF’s latest report reaffirms concerns within the industry about the repercussions of modifications to the current planning system. The data reveals a 13% drop in units gaining planning approval year on year, and a striking 22% reduction over the past two years. Specifically, the first quarter of 2024 saw the approval of only 53,862 units, a figure not this low since the second quarter of 2015, representing a 19% decline from the previous quarter and a 13% dip from the same period last year.
London’s situation is particularly concerning, with only 7,613 units approved in the first quarter of 2024, marking the lowest quarterly statistics since 2012. This represents a 39% decrease from the same quarter last year and a drastic 51% reduction compared to the fourth quarter of 2023. Furthermore, the rolling 12-month approval total for London is at its lowest since the third quarter of 2015. Other regions, such as the East Midlands and Yorkshire and the Humber, have also experienced significant declines in planning permissions, highlighting a widespread issue across the country.
Stewart Baseley, Executive Chairman of the HBF, paints a grim picture given the current housing crisis and the rapid decline in house building. According to Baseley, the dwindling numbers pose severe challenges for upcoming governance in achieving housing objectives, with a pipeline now smaller than during past economic downturns. Urgent and substantial measures are required to mitigate the considerable obstacles confronting housing delivery.
Baseley further emphasises the necessity for immediate steps to reverse harmful changes made to the planning process in recent years. Enhancing the capabilities of local authorities in managing planning applications effectively is crucial. Moreover, adequate governmental support is essential to assist buyers, as there is currently a notable absence of effective initiatives to help individuals purchase high-quality, energy-efficient homes.
Immediate and bold governmental action is imperative to address the declining trend in planning permissions and to secure future housing supply.
