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Planning application decisions too sluggish to meet UK’s 2020 new home target

Planning application approvals are rising in the UK but are still at a level that will not meet the Government’s target of a million new homes by 2020, the latest data shows.

In the second quarter of 2016 district level planning authorities in England received 132,000 applications for planning permission, up 7% quarter on quarter and granted 100,900, a rise of 6%.

The figures from the Department of Communities and Local Government (DCLG) also shows that this is equivalent to 88% of decisions, but this unchanged from the same quarter of 2015.

The data shows that a decision was made on 83% of major applications within 13 weeks or the agreed time, up from 79% a year ago and overall some 12,200 residential applications were approved, up 8% year on year.

Some 11,900 applications for prior approval for permitted development rights were received, up 7% quarter on quarter and 9,700 of those applications were approved without having to go through the full planning process, a rise of 8% compared to the second quarter of 2015.

In the year ending June 2016, district level planning authorities granted 378,200 decisions, up 4% year on year and granted 47,600 decisions on residential developments of which 6,000 were for major developments and 41,600 for minor projects, both up 6% year on year.

However, it is suggested that this pace is not enough to meet new home building targets and overall local planning authorities granted 22,000 fewer applications in the second quarter of 2016 compared to a decade ago.

According to Andrew Bridges, managing director of London based estate agents and surveyors Stirling Ackroyd, the figures show the Government is failing to put its money where its mouth is when it comes to housing. ‘The sluggish growth in the approval of residential applications will not be enough to enable a million new homes to be built by 2020,’ he said.

‘Local authorities are still granting fewer applications than a decade ago, despite the Government’s highly publicised housebuilding agenda. While councils are granting 88% of all decisions, it’s concerning this proportion varies wildly in different local planning authorities. Given the serve shortage of homes across the UK, we can’t afford for some councils to only grant a quarter of applications for major developments,’ he pointed out.

‘The Chancellor must do more to support house builders and the construction sector, if we are to have any hope of fixing the housing crisis. Additional help to unblock stalled sites and incentives to build-out existing permissions will enable house builders to step up supply. We can’t afford to allow this pre-Brexit stagnation in the creation of new homes to continue if we want to stop house prices from spiralling out of control,’ he added.

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