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tinker

Report Reveals Housing Planning Permissions Continue To Fall

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I came across this report by the HBF (House Builders Federation), who are concerned about the fall in planning permissions.

Are people dipping out of the market because there are shortages of available housing or because they can't afford them?

I imagine the HBF have a bit of a VI, and are a fan of subsidised FTB schemes.

[My embolding. =14818&tx_ttnews[backPid]=2188&cHash=92c75c263a"]Article here.]

Report Reveals Housing Planning Permissions Continue to Fall
21 February, 2011
Local Authority planning permissions for house building continued to head firmly downwards in Q4 of 2010, the latest HBF Housing Pipeline report released today reveals. It is the third successive quarterly fall and leaves permissions at less than half the rate being granted four years ago.
Across Great Britain, just 33,000 homes were approved for construction in the last three months of 2010 - 9% down on the previous quarter and 22% down on a year ago. Social housing was hardest hit with only 5,500 approvals - a new low for the survey and particularly concerning with 5 million people already languishing on Local Authority housing waiting lists.
HBF releases the report just days after Government published its 2010 housing statistics that showed the number of new homes completed in England in 2010 slumped 13% on the previous year - itself the lowest peacetime number on record since 1923.
The implications of the collapse in permissions are stark and exacerbate an already
acute housing crisis
.
Currently the country has a housing shortfall estimated to be a million homes, with people being forced to stay with their parents for longer and first time buyer levels at an all time low
.
Permissions granted for homes typically take up to three years to build. So the full implications of this drop will not be felt for some time. However, with household formation projections showing the need for England to build around 232,000 homes a year until 2033, and 2010's total at just 103,000 - there is obvious potential for the crisis to deepen.
The new Housing Pipeline report shows that through 2010 there was a steady fall in permissions granted to developers for new homes in England, with a drop from over 40,000 in Q1 to under 30,000 in Q4. This drop coincides with the Coalition Government having set out a radical agenda for planning change. The downward trend in permissions shows the importance of the Government implementing its proposals for a pro-growth planning system as soon as possible.
Speaking today, HBF Executive Chairman Stewart Baseley said.
"These figures are extremely concerning. A reduction in permissions granted now will see fewer homes built in future years, exacerbating the already acute housing shortage we are currently experiencing.
"The figures demonstrate the necessity for the Government to clarify exactly how the new Localism based planning system will deliver the homes, and supply the growth we desperately need. Only by ending the ongoing hiatus caused by the scrapping of the old system without a ready replacement can developers and Local Authorities plan ahead confidently and effectively for new housing.
"It is also crucial that Councils recognise the housing shortage and accept their new responsibility for housing supply. This will require understanding the new system, taking full account of the Government's incentives and allowing developers to build the homes local residents and the country desperately need.”
The report, compiled by Glenigan for HBF, is the second of what will be quarterly monitoring. It will provide a regular and accurate assessment of the situation being faced by developers as Local Authorities get used to the new planning system.

Could it be that planning applications are falling because demand at boom levels of pricing is falling - the unsustainable became unsustainable? The market is functioning, the horses are spooked and if we could get the government out of the way things might return to some sort of normality.

Edited by tinker

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Guest The Relaxation Suite

I came across this report by the HBF (House Builders Federation), who are concerned about the fall in planning permissions.

Are people dipping out of the market because there are shortages of available housing or because they can't afford them?

I imagine the HBF have a bit of a VI, and are a fan of subsidised FTB schemes.

[My embolding. =14818&tx_ttnews[backPid]=2188&cHash=92c75c263a"]Article here.]

Could it be that planning applications are falling because demand at boom levels of pricing is falling - the unsustainable became unsustainable? The market is functioning, the horses are spooked and if we could get the government out of the way things might return to some sort of normality.

This isn't my area at all but one guess would be that they are falling because they got so out of control under Labour, when permission was given for basically anything that was sought. One house down a street I used to live on got permission to build a two bedorom place on the side of it (thereby turning it from detached to detached with a shed on the side of it). I have never seen anything so ridiculous in my life - the place was about three metres wide with a garden the same size and shape as a Dairylea cheese triangle. It sold for 175k, if you're interested.

Stopping this nonsense is a good thing with me. Also, I think the Tories introduced a change in planning to stop gardens being built on so easily so this is impacting as well.

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This isn't my area at all but one guess would be that they are falling because they got so out of control under Labour, when permission was given for basically anything that was sought. One house down a street I used to live on got permission to build a two bedorom place on the side of it (thereby turning it from detached to detached with a shed on the side of it). I have never seen anything so ridiculous in my life - the place was about three metres wide with a garden the same size and shape as a Dairylea cheese triangle. It sold for 175k, if you're interested.

Stopping this nonsense is a good thing with me. Also, I think the Tories introduced a change in planning to stop gardens being built on so easily so this is impacting as well.

This is my view, having witnessed a free-for-all in my part of the world. Manufacturing plants closing, businesses closed down, social clubs and pubs sold off, garden grabs... to cash in on the credit-driven 'boom'. Funnily enough, it stopped dead once the 'credit crunch' happened. Still plenty of approved planning permissions, I suspect they won't get built or will be modified. There are examples of permissions for flats being turned into second hand car plots.

The speculators should get burned but government interference is preventing the much needed correction.

Surely, if there was a shortage of housing they would be built, because the demand would be there. A pity the last 'boom' bust the banks. Some may wish it, but there is no going back to 2007.

Edited by tinker

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Guest The Relaxation Suite

This is my view, having witnessed a free-for-all, in my part of the world. Manufacturing plants closing, businesses closed down, social clubs and pubs sold off, garden grabs... to cash in on the credit-driven 'boom'. Funnily enough, it stopped dead once the 'credit crunch' happened. Still plenty of approved planning permissions, I suspect they won't get built or will be modified. There are examples of permissions for flats being turned into second hand car plots.

The speculators should get burned but government interference is preventing the much needed correction.

Surely, if there was a shortage of housing they would be built, because the demand would be there. A pity the last 'boom' bust the banks. Some may wish it, but there is no going back to 2007.

Perfect! Maybe other developments will be modified into soup kitchens and homeless shelters.....

Love that Arbiter quotation by the way.

Edited by Tecumseh

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Perfect! Maybe other developments will be modified into soup kitchens and homeless shelters.....

Love that Arbiter quotation by the way.

Re the Arbiter quotation, it just goes to show you that meddling and being superior is a human condition.

I've seen the acquisition of land and the importance of getting planning permission to maximise that investment. All part of the frenzy. You only have to look at the ludicrously priced flats that got built.

The slow down in planning applications reflects the reality, that against a backdrop of economic uncertainty and (finally) more risk averse banks that there is a shakedown going on.

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Stopping this nonsense is a good thing with me. Also, I think the Tories introduced a change in planning to stop gardens being built on so easily so this is impacting as well.

I think this had a big effect in my area.. Esher

Plenty managed to squeeze in before with planning and most projects are coming to an end but no sign of any garden grabbing developments springing up near me.

Nice and quiet :)

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  • 311 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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