The latest housing pipeline report released by the Home Builders Federation (HBF) and Glenigan states a total of 351,169 permissions were granted last year, the highest figure recorded since quarterly housing pipeline reports started being produced in 2006.
With over 217,000 new homes completed last year, housing supply is up 74% in the past four years, meaning the industry is on course to deliver the Government's previous housing target of a million homes by 2020. However, HBF said further improvements to the planning system and the business environment for small house builders will be needed to get closer to the Prime Minister's 300,000 a year target set for the mid-2020s.
In addition, while the number of plots approved in 2017 was 35% higher than in 2006, there were 3.5% fewer sites permitted last year. With larger sites typically requiring greater upfront capital and more extensive infrastructure, the HBF said it can take longer for sites to reach peak build out rates and SME builders are unable to compete for sites.
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Stewart Baseley, Executive Chairman of the HBF, said: "The record number of applications being submitted and approved is a clear demonstration of the industry's commitment to ramping up housing supply even further than the unprecedented increases of the last four years. To build more home needs more land to come through the planning system more quickly, and to encompass a broader range of sites.
"SME builder numbers are down by more than 80% in recent decades as layer upon layer of legislation has worked against small firms and start-ups as well as those delivering specialist housing such as retirement homes.
"Government should ensure councils are not just taking the easy option and encourage them to grant permissions on a range of sites by type and size rather than merely relying on a few larger sites to meet local housing need."
Glenigan's Economics Director, Allan Wilen, added: "The residential development pipeline remains strong, with a rise in approvals during the fourth quarter taking the total for 2017 to 351,169 units, a 21% increase on the previous year.
"The increase in approvals bodes well for potential new housing activity over the coming year as housebuilders are able to bring forward development on these new sites in response to demand."
To view the housing pipeline report, visit here.
(LM/MH)
