Planning permissions drop to an alarming five year low

The HBF report which was compiled by Glenigan and published last week is to be the first of a new quarterly monitoring.  HBF states that the report gives the first full and accurate picture of the number of planning permissions being granted by Local Authorities across the country.
Glenigan have recorded the approval of 36,400 residential units during the third quarter of 2010 a 7% decline on the previous quarter and an 18% drop on a year ago. This compares to a low of 25,200 residential units approved during the second quarter of 2009 and a quarterly average of 64,500 during 2006 and 2007.
HBF Executive Chairman Stewart Baseley said:
"The report paints a bleak picture and shows how permissions, the lifeblood of housing supply, have plummeted. We already have an acute housing crisis and these figures show there is potential for it to get much worse. The social and economic implications of this would be a disaster for the country."
"The Government cannot afford to let confusion over planning policy reduce further the number of permissions given. Whilst the policy vacuum of the past few months is now being filled, it is vital Government gets on and implements its new policies. It must ensure Local Authorities accept responsibility and the power they have been given. It is crucial Councils recognise the housing shortage, understand the new system and appreciate the Govt’s incentives and allow developers to build the homes their residents and the country desperately need.”
Steve Lees, Director at, comments:
“The fact that the number of new home planning permissions granted nosedived last year will come as little surprise to the industry, which has been hit hard by the abolition of housing targets and confusion over planning law. The outlook remains clouded and I wouldn’t expect to see a sharp rise in new home approvals in 2011, since continued delays to the implementation of Shapps’s Localism policy mean the planning system remains in disarray.
"Even if Localism is successful in increasing new homes development in 2012 and beyond, it will be many years before the industry is able to make any serious dent in the housing shortfall. Shapps is calling for housing market stability, but there needs to be a dramatic increase in supply before it will have any impact on prices."
You can read the full report here:
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