Government’s Housing Target Faces Steep Climb
A recent report by the Home Builders Federation (HBF) has revealed a significant shortfall in planning permissions needed to meet the government’s ambitious target of 370,000 new homes per year.
The data, compiled by Glenigan, shows a concerning decline in the number of units and sites gaining planning approval in Great Britain. In the second quarter of 2024, just 53,379 units were approved, marking the lowest quarterly figure since 2014. This represents a 3% drop from the previous quarter and a substantial 13% decline compared to the same period in 2023.
Over the past year, the number of permissions granted for both building sites and individual homes in England has plummeted to record lows. The HBF reports that the current rate of approvals is approximately 45% lower than the peak seen five or six years ago when housing supply was at its highest.
The HBF’s Housing Pipeline Report highlights several key findings:
Site Approvals
Only 10,400 sites were approved in the year to June, the lowest figure since the report began in 2006. This represents a 10% decrease compared to the same period last year and a staggering 53% drop from the peak in 2008.
Regional Disparities
Certain regions experienced even more severe declines in approvals. London saw a 20% drop from the previous quarter and a 42% decline compared to the same quarter last year. The northeast and east midlands also witnessed significant drops of 50% and 42% respectively.
While the government’s proposed planning reforms offer hope for the future, the HBF warns that they may not be sufficient without additional support for first-time buyers or other subsidy schemes for homebuilders’ customers.
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