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New HBF figures show planning permissions for new homes have halved in 4 years


The number of planning permissions granted in 2011 is half the number granted in 2006 and half the number required to build the homes needed to meet demand projected by the Government, a Home Builders Federation report has found. 

The report (8-page / 266KB PDF) said that 115,000 planning permissions were granted in England in 2011. This figure is the lowest since the HBF survey began in 2006.

The biggest drop has been in the north of England, which had seen the biggest rise in approvals in 2010. Approvals rose by 2% in the Midlands.

Just 16,334 social units were approved in 2011, down 47% on 2010 and 52% on 2006. The report notes that approvals of social housing schemes across England had "been on an erratic, downward trend since the general election".

Government figures also show a corresponding drop in total planning applications submitted. Statistics from the Department for Communities and Local Government (DCLG) show that overall planning applications fell from around 170,000 in the final quarter of 2007 to around 120,000 in the three months to September 2011.

"This is a stark reminder as to why Government must stand firm and deliver a robust and adequate planning system" said HBF executive chairman Stewart Baseley. "Government has recently unveiled some very positive measures aimed at boosting housing supply, particularly the NewBuy scheme, but they cannot succeed unless we have a truly pro-growth functioning planning system".

"The number of new homes securing planning approval hit a new low last year, falling below the previous low point set in 2009 during the depths of the recession," said Allan Wilén, economics director of Glenigan, the construction consultancy which produced the report. "The near halving in social housing units securing approval was especially stark and combined with the continued weakness of private housing approvals leaves the overall number of new homes at 132,000."

The Government is shortly expected to publish its redrafted National Planning Policy Framework. At the heart of the proposals is a presumption in favour of sustainable development which Ministers say will boost housebuilding and economic growth while not harming communities and the environment.

"The new system must provide enough viable land to build the number of homes the country needs," said Baseley. "Continuing the current record low level of house-building is storing up huge social and economic problems for the years ahead and the shortfall must be addressed."

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