Out-Law News 2 min. read
06 Sep 2012, 5:19 pm
In more than half of the plots that have been granted permission, no building work at all has been carried out. It is estimated that it will take three-and-a-quarter years to build all the homes in the backlog if the current construction rate continues.
The figures also revealed that the credit crunch has had an impact on the amount of time developers take to complete building projects. This has increased by several months, and in some cases years, with the longest delay being 9 years between the granting of planning permission and the start of building work.
"These figures conclusively prove that local authorities are overwhelmingly saying ‘yes' to new development and should finally lay to rest the myth that the lack of new homes being built is the fault of the planning system", said LGA Chairman Sir Merrick Cockell. "Even if planning departments did not receive another new home application for the next three years, there are sufficient approved developments ready to go to last until 2016 at the current rate of construction."
"Councils are also playing their part to unlock stalled sites by contributing land and assets, forming partnerships with developers and overwhelmingly saying ‘yes' to growth through the planning system," he said.
"To get Britain building again we need to address the lack of liquidity in the finance market and tackle the shortage of mortgages for struggling first time buyers," said Cockell. "The planning system has been massively reformed under this government and it is clear that unlocking frustrated demand, not increasing supply, is now the most urgent problem in the housing market today."
Figures in the report show that in 2011/12 an estimated 2,536 schemes obtained planning permission, totalling 135,179 potential homes. There were 399,816 unbuilt homes with planning permission on 31 December 2011. Building work had yet to start on 52% of the uncompleted developments. The average time taken for a development to progress to completion having obtained planning permission has lengthened from 20 months in 2007/08 to 25 months in 2011/12. One development completed in 2011 came 8.75 years after planning permission was granted.
"The housing crisis means that we should be exploiting all avenues possible to bring forward high quality, locally appropriate development. Measures to unlock finance and reinvigorate demand should be coupled with moves to enable councils, with their strong balance sheets, to invest further and faster in the homes we desperately need," said Cockell.
The figures come as Government has announced a major house building stimulus, including measures enabling developers to appeal planning obligations that make their building project commercially unviable. An extension to the Government's "First-Buy" scheme has also been announced, with a £280 million fund aimed at helping first-time buyers obtain a deposit.
The Government recently announced a consultation on section 106 agreements with proposals to allow developers to renegotiate agreements signed before April 2010 if they are preventing projects from going ahead.
