Three-quarters (74%) of developers reckon the government setting targets for councils will be key to solving planning issues, research from Shawbrook has revealed.
As it stands 39% of developers report an average waiting time of 4-6 months for planning permission to be granted, with a similar number (33%) revealing an even longer waiting period of 7-12 months.
Terry Woodley, managing director, development finance at Shawbrook, said: “The sector has had a tough time of late, with delays to planning permission leading to sluggish construction output and stretched timelines.
“However, the Chancellor’s recent speech to the Treasury will likely be a source of optimism, with additional support in the form of clear housebuilding targets, a review of green belt boundaries, and an increase in planning officers being announced.
“With our research revealing just how detrimental planning challenges are for developers, it’s positive to see the new Government addressing them early on in their premiership.”
There’s been a shortfall in homes being built as well as increased construction costs.
Woodley added: “Additionally, developers will be watching closely to see how an overhaul of the planning system plays out. The Chancellor announced that planning decisions for major infrastructure projects will shift away from local authorities and towards national ones. In theory, this should stop projects from being snagged and delayed by red tape which has become a common pitfall for developers.
“Those looking to move projects forward should consider speaking to a broker, especially one in a specialist space, as they can help navigate more complex cases and offer unique products. For example, at Shawbrook we offer a planning assistance loan which helps developers enhance the planning already agreed for a site. From this loan, developers can transfer seamlessly to a development finance loan to build the project, making it a useful product for those looking for additional support.”
