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Sir Keir Starmer’s authorities might want to enhance the variety of planning permissions granted in England annually by greater than half to hit its housebuilding targets, based on knowledge that highlights the size of the problem.
The variety of properties given planning permission in England final yr fell to the bottom since 2014, figures from knowledge supplier Glenigan present. This might want to rise by 53 per cent to hit the 370,000 planning permissions goal that Labour set below its nationwide planning coverage late final yr.
“The newest planning figures present that housing provide within the quick and medium phrases is at essential disaster ranges,” mentioned Neil Jefferson, chief govt of the Dwelling Builders Federation trade group, which publishes the information.
Starmer’s administration has made boosting housebuilding a key pledge because it was elected final July, promising 1.5mn new properties over 5 years.
Ministers have mentioned they should overshoot on the variety of planning permissions granted to achieve that degree of provide — the very best in a technology — since not all properties given permission are finally constructed.
Labour blames planning modifications made by the previous Conservative authorities, below stress from anti-development MPs, for the downturn in housebuilding. The contraction in exercise additionally displays the affect of upper rates of interest.
Glenigan’s figures, that are additionally utilized in official statistics, present 242,610 properties have been granted permission in England in 2024, down 2 per cent from the yr earlier than. However the knowledge additionally reveals permissions picked up within the last quarter of the yr.
Labour’s reforms to the planning system have been praised by the housebuilding trade, however each the HBF and the Nationwide Housing Federation have mentioned these measures alone won’t be sufficient to achieve the 1.5mn goal.
Critics of the business housebuilders, who present the overwhelming majority of the UK’s new properties, say these firms intentionally construct slower than they may do to manage provide and obtain increased promoting costs.
The trade argues that constructing charges are restricted by purchaser demand, and say the answer is for the federal government to assist consumers with a mortgage scheme just like Assist to Purchase, which ran from 2013 to 2023. First time consumers specifically have struggled with affordability given the upper mortgage charges over the previous two years.
Corporations say native authorities are already responding to the stress from Westminster following the planning reforms.
Graham Prothero, chief govt of MJ Gleeson, which has housebuilding and land promotion divisions, mentioned authorities are more and more approving developments to maintain management of decision-making, moderately than dealing with appeals over their heads to central authorities.
He mentioned the progress on planning on the bottom “is extra optimistic than you suppose. We’re seeing it”.
The Ministry for Housing, Communities and Native Authorities mentioned: “This authorities inherited a damaged planning system . . . Now we have already taken decisive steps to get spades within the floor.”
