Planning granted for more than 350,000 homes in past year

Planning permission for 369,524 new homes in England have been granted in the year up to June. The figures from the Home Builders Federation and Glenigan’s latest Housing Pipeline report also show the number of schemes approved top records for the past decade, with 20,076 projects given the green light in the 12-month period. The figure maintains a trend of exceeding 300,000 new homes since the start of 2017. It saw double the total of planning permissions granted compared with five years ago. Private developers were behind the bulk (91%) of homes granted approval, seeking increasingly larger plots for at-scale developments, largely in London and the South East. More than half of permissions granted were concentrated in the South. The average project size during this period almost doubled, with 18 homes compared with 11 five years earlier. Though projects are smaller compared to the same time last year, when the average scheme sat at 20 homes. Second quarter drops Figures for Q2 show a decline in homes gaining approval, dipping to 77,704, compared with 96,250 in Q1. HBF said the drops may be in part due to uncertainty over the future of Help to Buy after March 2021, when the scheme is set to end. The number of projects approved dropped marginally in this period, with 5,238 down from 5,399. More smaller sites were given the go ahead in Q2. The average site size dropped to 15 home, compared with 20 during the same period in 2017. Social v private approvals Just 115 social sector schemes were given the go ahead in Q2, the lowest number of schemes approved since 2011 and a large drop from the 201 projects approved in Q1. Some 6,559 social units were approved, down from 10,563 the previous quarter. This trend was not reflected in yearly averages due to a strong Q1. Over the past 12 months, 631 social schemes were approved, equating to 34,103 homes. In contrast, 2,591 private sector projects received the green light in Q2, totalling 68,129 homes. This was a drop from 82,170 in the previous quarter. Private sector homes continue to bolster planning approvals – making up 91% of homes approved in 2018, compared with 81% in 2008, with the proportion of social homes halving over a decade. Regional hotspots Approvals in the past 12 months were concentrated within the South East (70,617) and London (65,130), with the lowest levels seen in the North East (12,941) and Yorkshire and the Humber (29,978). The biggest quarter-on-quarter drops were seen in London (34%) and the North East (38%). Just two regions in England saw increases during this period: Yorkshire and the Humber had an increase of 18% and the South West was up by 6%. Stewart Baseley, executive chairman at HBF, said: “That fact that permissions are now running at more than 350,000 a year shows that builders are investing in the land and people needed to deliver more homes. “If we are to get to 300,000 homes a year, we need to see consistently high levels of permissioned being granted and then, crucially, processed efficiently.” He said the new planning system for local authorities, more sites of varying sizes and certainty over the future of Help to Buy will all be key to driving output. Allan Willen, economics director at Glenigan, said: “The residential development pipeline remains strong, despite a second quarter dip in residential unit approvals from the historically high levels seen over the past year. “Indeed, the number of projects securing approval was up 17% on a year ago as permission was granted for more smaller sites.” To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette