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Baseley, “The house building industry faces some major barriers to delivery and all indicators now show sharp falls in supply. SMEs in particular are unable to manage the delays caused by the collapsing of the planning system and the lack of capacity in planning departments.” Baseley has watched many small housebuilders go out of business and he thinks we need urgent action before more companies disappear. “SMEs are vital to the industry’s ability to deliver the homes we need,” he says. The HBF also recently published its latest Housing Pipeline Report revealing that the number of planning permissions granted for new homes continues to fall sharply, down 20% year on year, with 2023 seeing the fewest number of sites approved since records began in 2006.The number of plans adopted last year was the lowest for a decade, with warnings that these proposals could cause a drop of 77,000 homes a year. The South fared particularly badly according to the report, which shows that the number of units approved in 2023 was the lowest since 2015 in the South East, the lowest since 2013 in London and the lowest since 2012 in the South West.Year on year, each of these regions saw falls of 13%, 26% and 18% respectively.The same regions have already seen annual falls of more than 10% in new build completions.
bringing affordable housing to working people who are being priced out of the capital.” Richards points to a similar proposal in the 2019 Draft London Plan which would have seen more than 25,000 homes a year built, but he says, “The policy was dropped after planning inspectors intervened arguing the approach went ‘too far too soon’. “ The report details a similar project in Auckland, New Zealand, which doubled housebuilding, cut emissions and resulted in rents being a third lower. Richards adds that “if the same happened in London it would result in a £6,000 saving for a young family renting the average two bedroom apartment”, and he calls upon the mayor to rewrite the London Plan to allow up to six-storey developments on small sites near the capital’s best-connected areas. The organisation is asking those who support its plan to sign a petition. britainremade.co.uk SURVEY OF HOUSEBUILDERS There may be other reasons for the limited supply of new homes, not just in London but all around the country. A recent survey carried out by the Home Builders Federation, HBF, found that many SME housebuilders, smaller and medium sized enterprises, are struggling to build new homes, with 90% saying that they are unhappy with the Government’s approach to planning and housing.The report blames what it calls an “overburdened planning system” and it looks at the impact that rising interest rates have had on smaller homebuilding businesses in what it describes as a “collapse in homebuilding”. The study found that 93% of SMEs cite delays in securing planning permission as a major barrier to growth; 91% say planning departments in local authorities are under- resourced, which is hindering growth of SME homebuilders; 46% of SME developers say the cost of obtaining planning permission has risen by over 30% in the past three years; and 72% claim interest rate rises have been a major obstacle in the past year. Only 13% think the Government’s approach on housing and planning is positive for first time buyers. The report comes as all indicators point towards a sharp fall in housing supply amid an increasingly challenging policy and economic environment. Proposals to abolish mandatory housing targets were confirmed by the Government last year, a decision that 80% of respondents said will further restrict supply as it would likely lead to more councils withdrawing their local building plans. Over 60 local authorities have already done so, causing further delay and confusion, says HBF’s executive chair Stewart
EXPERT COMMENT
High rents and house prices don’t just mean Londoners cannot get on the housing ladder; it holds back our economy. London is the UK’s most productive city and makes up just under a quarter of Britain’s GDP. If London’s housing costs were brought down and more people could afford to live and work in the capital, it would make the UK’s economy stronger and end a decade plus of stagnation in living standards.
Sam Richards , founder, Britain Remade
EXPERT COMMENT
We are actively looking to grow our business and we see that there are still good levels of demand out there for high-quality, bespoke family housing. The Government needs to help small businesses and SMEs like ours to take the big steps to deliver more housing by filling the sector with confidence and making some bold moves in this election year. I think they would be pleasantly surprised by what the sector could achieve if they stood behind it and provided it with the stimulus it desperately needs.
WHERE ARE MOST NEW HOMES BUILT?
Some local authorities are performing better than others when it comes to building new homes. A study by 24housing.co.uk looked at building completion rates in various local authorities across the UK between 2020 and 2023 and compared them to the population of each local authority to determine the number of builds completed per 10,000 people. Stratford-on-Avon takes first place with 283.9 new buildings completed per 10,000 population, reflecting, the report says, “a concerted effort to meet the growing demands of its populace”.The total number is 3,860 houses compared to its population of 135,964. South Derbyshire followed closely behind, with 3,000 builds completed, translating to 277.6 new houses per 10,000 population. In third place, Mid Suffolk “demonstrated a commendable commitment to urban development”, said the study, ranking third on the list, with 2,670 builds completed between 2020 and 2023.This accomplishment translates to 258.2 builds per 10,000 population, showcasing the region’s proactive approach to addressing housing demands while maintaining its distinct rural character.
Mike Burton , Land Director, Metis Homes
EXPERT COMMENT
The rapidly emerging consensus is that we need to deliver 500,000 new homes per year, yet we can barely manage 200,000 at present. We need action to save an SME housebuilding sector in crisis, yet despite intense campaigning by the sector we haven’t received a penny of support.
Marc Vlessing , Founder and Chief Executive, Pocket Living
First Time Buyer June/July 2024 125
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