Real Estate

SME housebuilders urge for more planning funding

Over half (52.5%) of SME housebuilders have called on Labour to provide more funding for planning departments, a Knight Frank survey has revealed.

So far Chancellor Rachel Reeves has announced that 300 new planning officers will be recruited, which equates to less than one per local authority.

Two in five (42.5%) developers would also like Labour to bring back five-year supply tests for all local authorities.

The five-year calculation determines whether there is a deliverable supply of homes to meet the planned housing requirement, or local housing need, over the next five years.

The change developers most wanted has already been delivered, as 65% called for a reinstatement of housing targets. Labour has introduced a target of building 1.5 million homes in five years.

Anna Ward, associate in residential development research at Knight Frank, said: “These survey results are a call for a reversal of some Conservative housing policies, from reinstating local housing targets to reintroducing the 5-year land supply test.

“But they also highlight long-standing issues that the housebuilding sector would like to see addressed, such as more funding for planning departments, as well as a step-change in approach, including loosening greenbelt restrictions.”

According to housebuilders their planning applications are currently being deterred by a lack of planning authority resourcing (67%), uncertain timescales to get planning determination (67%), as well as S106 Affordable Housing obligations/viability (59%).

Ward added: “It is no surprise that planning applications in England are currently at an all-time low, given challenging market conditions.

“The majority of homebuilders, seven in ten, say that planning authority resourcing and uncertain timescales are key challenges followed by affordable housing obligations and viability.

“So, this points to a clear desire for more funding from government into both planning departments and the affordable housing sector.”




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