House building expands at its fastest rate in over a decade

Research undertaken by Glenigan has revealed that the planning pipeline for new-build private housing rose at its fastest rate in over a decade in 2016.

The research shows that the amount of homes included in detailed planning applications submitted during last year increased by more than half.

Detailed applications submitted during 2016 for private new-build housing shows a total pipeline of 135,278 units.

That is the highest number since 2004 when the number of units in the pipeline reached 164,197. Within four years, the pipeline had halved with detailed applications collapsing by a third in 2007 alone due to the financial crisis.

Glenigan’s Economics Director, Allan Wilen, said: “With red tape on planning being cut back by the government, restrictions on social housing provision loosened and government subsidy for both developments and enabling infrastructure available, housebuilders are clearly in an optimistic mood with regards to developing new homes through the planning system.”

Glengians’s also reported that there are underlying indications that housebuilders are increasing the ratio of apartments to housing in their applications, as attempts to develop the private rented sector begin to have an impact.

In 2004, 34% of the units in the planning pipeline were apartments. That ratio slowly began to recede over the next decade as housebuilders were left with with plenty of unsold stock in urban areas such as London, Leeds and Manchester.

Over the next decade, the ratio of flats in the pipeline sank and fell below 11% in 2015. Last year, the proportion only rose to 12% but the apartment pipeline grew at a far larger rate than either of the other two main house types.

While the number of houses in the pipeline leapt 59% and OAP housing rose 31%, the number of apartments in the planning pipeline ballooned by 82%.

Mr Wilen commented: “This is an indication that attempts to develop the private rented sector are working as the bulk of units in PRS are typically going to be apartments rather than houses as this is what will appeal to tenants.”

If you would like to read more articles like this then please click here

The post House building expands at its fastest rate in over a decade appeared first on UK Construction Online.