Onerous planning conditions cause delay to house building, says HBF

The HBF's latest Housing Pipeline report (8-page / 597KB PDF), which has been compiled by construction analyst Glenigan, revealed that the number of planning permissions granted in the second quarter of 2013 had increased 49% compared to the second quarter of 2012. The first six months of 2013 had seen 77,686 permission being granted, a 26% increase on the first six months of the previous year, it said.

The HBF said that the figures were a "strong forward indicator" of future levels of home building. It said that the upturn is a result of earlier Government demand-side measures, an improving mortgage market and the impact of the "positive planning principles" set out in the National Planning Policy Framework, which was introduced in March 2012.

However, the HBF also reported increasing industry concern that planning conditions are becoming more onerous and more numerous, thereby causing "considerable costly delays to construction".

It warned that local authorities have to be realistic about what conditions they attach to a planning permission and that they should assess whether compliance with a given condition is necessary before construction starts or if it can be discharged later in the development process.

“The overall trend in residential permissions is very positive," said HBF executive chairman Stewart Baseley in a statement. "It reflects house builders’ increasing confidence in the market and also the positive principles of the new planning system. With Help to Buy forging ahead strongly and developers looking to increase output, we need to see the increase sustained."

“However, at a time when developers are looking to build more much needed homes, we are increasingly concerned by the conditions attached to many of these permissions that prevent actual work starting on site. Local authorities must ensure planning conditions are not overly onerous or unrealistic otherwise, despite the success of Help to Buy, the much needed increase in housing supply will be held back," he added.

Baseley also noted that, despite the increase in the number of planning permissions, the figure is still "well short" of the 220,000 homes needed per year to meet housing demand. "All parties need to work closely together to ensure we see continuous and steady increases moving forward," he said.