Slump in planning permissions for new homes
Housebuilders have blamed a vacuum in planning policy for a 25 per cent drop in the number of planning permissions granted for new homes in England during the second quarter of 2010.
The New Housing Pipeline report published today by the Home Builders Federation (HBF), says that planning permissions granted to developers for new homes in England dropped from over 40,000 in the first quarter of 2010 to just over 30,000 in the second quarter.
Planning permissions to build schemes of ten or more homes are now at one of the lowest levels in the last five years, and the second lowest of the past 19 quarters, according to the report.
Regionally, in the South-East permissions rose from 3,483 in Q1 to 5,260 in Q2 but fell back again in Q3 to 4,865.
The North-East saw permissions slump from 2,859 in Q1 to 1,010 in Q2 and 624 in Q3.
The HBF blamed the drop on changes to the planning system being implemented by the new coalition Government, and a shift from the old top down targets to the new localism based approach.
HBF executive chairman Stewart Baseley said: "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 government’s incentives and allow developers to build the homes their residents and the country desperately need."
A DCLG spokesperson said: "Ministers believe that the top-down approach of the past slowed housebuilding to a trickle with an average 26,000 fewer homes built each year between 1997 and 2009, the lowest peacetime house-building rates since 1924.
"The Coalition Government will revolutionise the planning process by taking power away from officials and putting it into the hands of those who know most about their neighbourhood - local people themselves. This will be a huge opportunity for communities to exercise genuine influence over what their home town should look like in the future."