23rd Sep 2013 05:39
LONDON (Alliance News) - There are still not enough housing planning applications being approved to meet housing demand, despite housing planning permissions rising 49%, the UK's House Builders Federation said Monday.
There were 77,686 permissions granted in the first six months of the year, a 26% year-on-year increase, but this is well short of the 220,000 per year needed to meet housing demand, the housebuilders body said.
The figures mean that the moving annual total, that hit a trough of 117,067 in the 12 months to 2011, has risen to 156,608, a 34% increase, which is a strong forward indicator of future levels of home building, the federation said.
This upturn can be attributed to an improved mortgage market and government's mortgage-support schemes, such as Help to Buy, it said.
The Help to Buy programme guarantees part of a borrower's mortgage advance, allowing them to get a loan with a lower deposit than would be normally required. The aim is to boost the number of first-time buyers able to afford properties.
UK house prices have recovered rapidly this year, and some experts are warning already that the government schemes may be about to help create a new housing bubble. The market, particularly in London and the southeast, is being supported by a lack of available new homes.
The federation's concern follows calls earlier this month from major housebuilders including Taylor Wimpey, Barratt Developments and Persimmon for the UK government to address constraints on supply, such as the planning system.
Housebuilders have said they are committed to building more homes to meet demand but have said more needs to be done to cut planning regulations and free-up more land to build on.
Planning Conditions are set by local authorities upon granting planning permission, with many requirements needing to be met before work starts.
However, a number of builders have said these conditions, which in some cases can total in excess of a hundred separate items, are becoming more onerous and more numerous and are causing considerable costly delays to construction, sometimes taking years after the permission has been granted to meet satisfactorily.
"At a time when developers are looking to build more much needed homes, we are increasingly concerned by the conditions attached to many of these permissions that prevent actual work starting on site," Home Builders Federation Executive Chairman Stewart Baseley said in a statement.
"Local Authorities must ensure planning conditions are not overly onerous or unrealistic otherwise despite the success of Help to Buy, the much needed increase in housing supply will be held back."
Basely said building more homes will help ease social housing waiting lists, get first time buyers on the property ladder and stimulate economic growth by creating new jobs.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
Copyright 2013 Alliance News Limited. All Rights Reserved.
Related Shares:
Barratt DevelopmentsPersimmonTaylor Wimpey