Housing planning approvals continuing to rise

Latest Glenigan Housing Pipeline survey shows number of new planning approvals increased during fourth quarter of 2016.

According to the latest HBF/Glenigan Housing Pipeline survey, the number of planning permissions for new homes continues to rise, with this being the highest yearly total ever recorded since the report by Glenigan began in 2006.

Residential planning approvals increased during the fourth quarter of 2016. The number of units approved during the quarter was 9% up on the third quarter of 2016 and 5% higher than during the same period last year. The year on year rise was driven by an 8% increase in the number of private housing units approved and a 15% rise in social housing units approved.

Around 90,200 residential units were approved during the fourth quarter of 2016, the highest quarterly total since 2008.

Housing schemes of ten or more units accounted for 79,800 or 88% of approved units; the remainder being on smaller new build projects including self-build schemes, homes included within non-residential projects and the conversion of non-residential properties.

There is concern regarding the drop in number of sites permissioned, falling by 11% compared with 2015 (from 19,600 in 2015 to 17,500 in 2016), indicating that larger “strategic” sites are being permissioned.

With larger sites, there are greater infrastructure requirements which mean that permissions take longer and the construction process can be slower. The Home Builders Federation have highlighted the important of Local Authorities being realistic about the time scale when delivering homes. In the last 18 months, the average size of permissioned sites has increased by 16%. Small housebuilders are faced with problems in finding suitable sites and progressing them through the planning process.

Overall unit approvals in Great Britain during 2016 as a whole were 12% up on a year earlier. The North of England was the strongest area of growth during the year, with approvals 24% higher than during 2015.

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