Review of gap between planning and actual construction of homes under way

Panel of experts to review the gap between number of planning permissions being granted and those built in areas of high demand

An independent review into understanding why hundreds of thousands of homes haven’t been built in the UK despite having planning permission is underway, it has been confirmed.

The review, described by the Government as ‘vital’ is examining the gap between the number of planning permissions granted and those actually built in areas of high demand. It is led by Sir Oliver Letwin and the Ministry of Housing, Communities and Local Government had announce the expert panel he is working with.

Announced in the Budget last autumn, the review will seek to identify the main causes of the gap. Official figures show that after planning permission is granted a variety of factors can prevent development from starting and slow down delivery and the review wants to determine why.

As of July 2016, just over half the 684,000 homes with planning permission had been completed and the review will make recommendations on practical steps to increase the speed of build out. Latest evidence shows that residential planning applications are up and that time to process major applications continues to be at a record high.

‘This Government is serious about finding ways to increase the speed of build out as well as tackling the complicated issues surrounding it. That’s why we have set up this diverse panel to help me test my analysis and to make practical, non-partisan recommendations, as we look to increase housing supply that’s consistent with a stable UK housing market,’ said Letwin.

The review will be conducted in two phases. Phase One, which is currently under way, will seek to identify the main causes of the gap by reviewing large housing sites where planning permission has already been granted. This will include information-gathering sessions with local authorities, developers, non-Government organisations and others. Early findings will be published in an interim report.

Phase 2 will make recommendations on practical steps to increase the speed of build out, which will be published in the full report. The review will also consider how to avoid interventions which might discourage house building or hinder the regeneration of complex sites.

Letwin will be assisted by a team of leading experts, including Richard Ehrman, author, small commercial property developer and former journalist, Lord Jitesh Gadhia, a member of House of Lords and investment banker, Lord John Hutton a Labour Peer and former Secretary of State, Baroness Usha Prashar, deputy chairman of the British Council and a non-executive director of the Nationwide Building Society and Christine Whitehead, emeritus professor of housing economics at the London School of Economics.