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30/06/2016

Planning permissions continue to rise - report

Words: Laura Edgar
Construction / iStock_000010378707

The number of planning permissions granted for new homes in Q1 of 2016 remained high, according to figures released by the Home Builders Federation (HBF) and Glenigan.

The New Housing Pipeline: Q1 2016 report, suggests that permissions for 66,102 homes were granted in the first three months of the year in England. This is an increase of 4 per cent compared to Q1 in 2015.

According to HBF and construction market analysts Glenigan, the Moving Annual Total has now recovered to just short of the pre-crash peak in the 12 months to March 2008, and is ahead of the levels in 2006 and 2007. They said this suggests house building can continue increasing to meet the “very high demand for new homes”.

They added that although many of these permissions still have some way to go before builders are able to build them, the figures are a strong indicator of future supply.

According to the report, the last 12 months have seen a 66 per cent increase in permissions granted since the lowest point of the recession in 2009. Numbers are 0.3 per cent lower than where they were at their highest in early 2008.

In February this year, The Planner reported on HBF and Glenigan figures suggesting that 181,000 new homes were built in 2014/15.

Peter Andrew, deputy chairman at HBF, estimates that there is a shortfall of “well over” one million homes in England, with almost 3.35 million young people living at home with their parents and 1.24 million people on housing waiting lists.

Andrew continued: “Help to Buy equity loan is driving demand and helping thousands of first time buyers a week purchase a new build home and with interest rates remaining at historically low levels, demand remains strong.”

Allan Wilén, economics director, head of business market intelligence at Glenigan added: “The level of planning approvals remains strong, driven by an increase in the number of private housing units approved. The firm development pipeline demonstrates that house builders are well placed to meet any strengthening in demand from house buyers.”

The report can be found here (pdf).

Image credit | iStock

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