Tag Archives: industry
Planning permission for new UK homes up 12% but only half what is needed
Planning permissions were granted in principle for close to 200,000 new homes a year in the UK in 2014, an increase of 12% compared to 2013 and up 39% on 2012, according to new data. However, local Authorities now need to ensure departments are able to process applications if more homes are to be built, says the latest report from the Home Builders Federation and Glenigan, adding that the pace is only half what is needed. The homes identified in the report will, once they have navigated the remainder of the planning process, in the main be completed over the next two to three years and the research also shows that the number of new homes started in 2014 was up 36% on 2012. It says that as demand for new homes continues to increase, due to improved consumer confidence and the Help to Buy equity loan scheme, existing sites are getting built on quicker and so builders are looking to get on to more new sites more quickly than before. But it points out that whilst the increases are positive, they can only be translated into desperately needed new homes if local authorities ensure their planning departments have the capacity to process these permissions to the stage that they can actually be built. Too many sites are ‘stuck’ in the planning system, with an estimated 150,000 plots at ‘outline permission’ stage awaiting full sign off by local authorities. New government initiatives to introduce deemed discharge of conditions will greatly assist in making sure the planning system will not be a constraint on increased housing provision but the overall resourcing of planning departments is still a concern, the report explains. It add that central and local government must prioritise proper resourcing of planning departments if authorities are to be able to efficiently process more applications, as recommended by the HBF. It believes that speeding up the rate at which permissions are granted is one of the keys to a significant, sustainable increase in housing supply. Local Authorities must be resourced sufficiently to be able to sustain this increase in the rate of planning permissions being granted in order that the industry can increase housing output. Figures in the latest report show that more permissions were granted in 2014 that in any year since 2008. It also shows that the number of sites getting permission continues to trend upwards. Getting more sites operational is absolutely key to a sustained increase in actual build numbers as more sites, means more construction work and sales outlets. ‘Over the past 18 months, demand for new homes, largely driven by the Help to Buy equity loan scheme has increased markedly. House builders have responded by significantly increasing house building activity,’ said Stewart Baseley, executive chairman of the HBF. ‘We are still only building around half the number of new homes the country needs. Getting the required number of permissions, in a timely manner, is absolutely key… Continue reading
Second phase of UK custom build fund announced
The second phase of a multi-million pound fund to help aspiring custom and self builders in the UK get their projects off the ground more quickly has been announced. The second phase of the £150 million fund is now open to bidders and will create up to 10,000 so-called ‘serviced plots’ which is land prepared for house building and connected to utilities such as gas and water, so builders can go straight in and build. According to Housing Minister Brandon Lewis the average self build takes two years but those using serviced plots can cut this by up to a year and he believes it will help further unlock the massive potential the custom build industry has to expand. The custom and self build industry currently accounts for around 10,000 new homes every year but the government is backing industry led efforts to double that by 2020. The £150 million fund is open to small builders and community groups as short term loans to help get the land ready for housebuilding. The land can then be sold as individual plots to people looking to build their own home. Lewis said he was determined to ensure as many people as possible could fulfil their custom build ambitions so he has given the green light for the first three bids to proceed to the next stage of assessment. Subject to successful completion three small builders in St Helens, South Norfolk and West Lindsey will receive a share of £850,000 to help provide 41 plots. ‘Custom build should not be something that’s confined to a small and select group of people. Anyone who aspires to build their own home should have the opportunity to do so. We want to see the industry grow significantly and this £150 million fund will help further unlock the massive potential it has to help even more people achieve their ambitions,’ said Lewis. ‘This fund will help create shovel ready serviced plots so small developers and custom builders can get on and build, finishing their projects more quickly,’ he added. Continue reading
CML reaffirms what needs to be done for UK home lending markets after election
The Council of Mortgage Lenders has reissued its election manifesto aimed at political parties ahead of the forthcoming vote in the UK in May. It highlights many of the issues for people in different tenures in today's housing market and sets out the challenges to be addressed in delivering effective housing solutions for the future. ‘The mortgage market is a £1.2 trillion industry, and housing a key electoral issue. This is our combination to the political debate. Whoever is in power after the election will have to show they can create a joined up and cohesive housing strategy for all housing tenures,’ said Paul Smee, director general of the CML. ‘The UK housing market is really a set of local markets, so there are especial challenges in delivering a focused long-term plan, but it is crucial for the wellbeing of citizens, and the growth of the economy and lenders are keen to play a positive role,’ he added. The manifesto gives a lender's perspective on what actions need to be taken to tackle the most important problems facing the market, Focusing on the needs of the old, the young, and the in-betweeners, it recommends creating a comprehensive house building plan to increase the supply of housing in all tenures. It also suggests the promotion of shared equity/shared ownership as a permanent tenure and addressing the regulatory stumbling blocks that relate to lending into retirement as well as promoting better pathways between the mainstream mortgage market, lifetime mortgages, and downsizing. The manifesto suggests work needs to be done to ensure new housing supply fully reflects the needs and aspirations of an ageing population and the need to identify any unintended consequences of regulation on credit worthy mortgage holders. It wants whoever wins the general election to work with the industry to develop a more effective safety net against the risk of change in household circumstances and make sure that policies affecting all tenures, such as welfare reform, are holistic and align with private sector markets. Continue reading
