Planning permissions have plummeted to their lowest level since 2005 4.3 million homes short !

Planning permissions have plummeted to their lowest level since 2005, with Labour councils among the most frequent rejecters. The Department for Levelling Up, Housing & Communities (DLUHC) reported a 10.4% decrease in approved applications in England between January and March compared to the same period last year. Over the past 12 months, seven of the top ten councils for rejecting planning permissions were Labour-controlled.

 

In the first quarter of this year, only 67,380 applications were approved by local authorities, down from 75,173 last year. Over the past three years, planning requests have dropped by a third due to rising interest rates and construction costs. Despite his pledge to build 1.5 million new homes, Sir Keir Starmer’s promise was outstripped by the Conservative manifesto's goal of 1.6 million homes over five years.

 

Rishi Sunak acknowledged this week that homeownership has become more challenging under Conservative governance. Labour deputy leader Angela Rayner called this admission a "damning indictment of 14 years of housing failure." The number of approved planning applications for major residential projects, those creating 10 or more homes, hit a decade low in the 2023/24 financial year, with only 3,721 granted in England.

 

Ant Breach from the Centre for Cities indicated that the UK's poor record on house building might worsen without planning reform. He advocated for a rules-based system, like those in other G7 countries, to reduce uncertainty in house building.

 

In Barking and Dagenham, only 61% of planning applications were approved in 2023/24, the lowest rate in England. Across the country, 24 councils, mostly in London, rejected at least a quarter of all applications. In contrast, Liberal Democrat-run Gosport council approved 99% of requests last year.

 

The Labour manifesto promises to use intervention powers to override councils blocking house building. Anna Clarke from The Housing Forum supported this move as necessary despite its potential unpopularity.

 

The Conservative plan includes abolishing EU "nutrient neutrality" rules, introducing a one-off environmental impact mitigation fee for developers, fast-tracking brownfield site development, and requiring councils to allocate land for small, local builders.

 

The Centre for Cities found that the UK housing market lacks 4.3 million homes compared to European counterparts, leading to an average house price of £302,000 in England by the end of 2023, which is 8.3 times the median annual wage—double the affordability ratio of 20 years ago.

My Building manifesto

 My Building manifesto @Brickies !!!! now listen here !! 

1. Fluid Planning System

• Digital Planning Portal: Create a centralized digital platform for planning applications, accessible to both developers and local authorities. This portal should streamline the submission process, automate routine tasks, and provide real-time updates on application status.
• Predictive Analytics: Utilise AI and data analytics to forecast demand for housing and infrastructure, helping local authorities make informed decisions on planning permissions and land allocations.
• Community Engagement: Implement digital tools for community engagement, such as interactive mapping and online forums, to facilitate public input and increase transparency in the planning process.

2. Skills Crisis Solution

• National Skills Strategy: Develop a comprehensive national strategy to address the skills shortage in the construction industry. This should include initiatives to attract young people to the sector, upskill existing workers, and promote diversity and inclusion.
• Partnerships with Educational Institutions: Forge partnerships with universities, colleges, and vocational training centers to tailor education and training programs to the needs of the construction industry. Offer incentives for students pursuing careers in construction-related fields.
• Apprenticeship Schemes: Expand apprenticeship schemes in collaboration with industry stakeholders, providing financial incentives for companies to take on apprentices and offering flexible training pathways.

3. Stamp Duty Cut and Help to Buy Scheme

• Targeted Support: Evaluate the effectiveness of the stamp duty cut and NEW Help to Buy scheme to ensure they are reaching their intended beneficiaries. Consider targeted adjustments or expansions based on market conditions and demographic needs.
• Affordability Measures: Supplement stamp duty cuts and Help to Buy schemes with additional measures to address housing affordability, such as rent-to-own schemes, shared ownership programs, and affordable housing quotas for new developments.

4. Tax Cuts for Landlords Selling to Tenants

• Incentivise Sale-to-Tenant Transactions: Expand tax incentives for landlords who sell properties to their tenants, encouraging homeownership and tenant stability. Consider additional support, such as low-interest loans or grants, to facilitate these transactions.
• Tenant Protections: Implement policies to protect tenants' rights and improve rental conditions, including rent controls, longer tenancy agreements, and measures to combat discrimination and unfair eviction practices.

5. BNG and Nutrient Neutrality Relaxation

• Review Regulations: Conduct a comprehensive review of regulations related to BNG (Biodiversity Net Gain) and nutrient neutrality to identify opportunities for relaxation without compromising environmental sustainability.
• Flexible Compliance Options: Introduce flexible compliance options for developers, such as off-site mitigation, habitat restoration credits, or contributions to conservation funds, to meet BNG and nutrient neutrality requirements.
• Innovation and Technology: Encourage the adoption of innovative technologies and best practices in ecological restoration and nutrient management to achieve environmental goals more efficiently and cost-effectively.

Conclusion

By addressing these key areas comprehensively, the government can create a more conducive environment for house builders and promote sustainable development in the UK. This holistic approach should balance the need for regulatory oversight with measures to stimulate growth, innovation, and social equity in the housing sector. Ongoing monitoring and evaluation will be crucial to ensure the effectiveness and fairness of these policies.