Targets for councils will unlock planning issues, say developers

Three-quarters (74%) of developers believe that the government setting targets for councils will be the key to unlocking planning issues faced in the UK, according to research from Shawbrook.

Last month, an overhaul of the planning system was announced by deputy prime minister Angela Rayner, with all councils in England to be given new mandatory housing targets in the government’s plan to build 1.5 million more homes by 2029.  

This comes as issues such as the shortfall in homes being built and rises in construction costs have plagued the sector, making it harder for developers to push forward with projects. 

In fact, a majority (39%) of developers reported an average waiting time of four to six months for planning permission to be granted, with a similar number (33%) revealing an even longer waiting period of seven to 12 months. Only 19% said they have an average waiting time of one to three months, and no developers surveyed were able to say they’d waited less than a month. 

Further analysis of the figures found that the mean waiting time for developers to gain planning permission came to seven months. This has been exacerbated in some cases, with one in ten developers revealing that they’ve previously had their planning permission requests rejected. 

In a similar vein, more than one in five developers disclosed that they find it difficult to source both property and land at a reasonable price, revealing yet another hurdle for developers to jump over. Comparably, more than two-fifths said they find it difficult to source property at a reasonable price but not land, and well over a tenth said they find it difficult to source land at a reasonable price but not property. 

Terry Woodley, managing director, development finance at Shawbrook, commented: “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.”

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