The number of residential projects granted consent by councils in England hit an all-time low in the final months of the last government.
The latest planning consent data for the year to June showed only 31,562 residential property proposals were given the go-ahead, down 8% year-on-year.
It is understood that developers are reluctant to submit planning applications owing to the costs involve and a lack of confidence in the market – highlighting the challenge for Labour which is pledging an additional 1.5 million homes in five years.
Between April and June this year, just 7,609 residential property projects were granted permission in England – ranging from applications to build a single property to proposals for large new housing developments – the lowest since records began in 1979.
Knight Frank’s associate in residential development research, Anna Ward, commented: “The supply pipeline of new homes across England is under pressure, with new applications falling sharply in recent quarters. This has been driven by a weaker appetite to build in light of higher finance costs, a weaker sales market, rising build costs and planning delays. This has contributed to a plunge in new homes coming forward and illustrates the extent of the challenge for the UK government which has pledged to get Britain building again.
“However, while challenges remain, the recent fall in mortgage costs and the fact that planning and development are front, and centre of the government’s objectives has already boosted sentiment and should give more developers confidence in bringing new housing projects forward. Crucially, those that act now in bringing schemes through the planning system will be selling new stock in a market facing a sharp supply crunch in the near term.”
