The report also goes into why the housebuilding body believes planning approvals have fallen and what the next government can do to rectify this growing issue
Planning permission figures have once again fallen to record lows(Image credit: Getty Images)
The latest Housing Pipeline Report from the Home Builders Federation (HBF) shows planning permissions have fallen to record lows this year, falling below the record lows seen last year.
The report shows that in the 12 months to March 2024, the number of new homes given planning permission has fallen to the lowest level since the data collection started in 2006.
The HBF "illustrate the stark challenge a new government faces to increase housing supply in the coming years" and we look at what is causing these issues and how they can be resolved.
160,000 homes held up by nutrient neutrality rules
Nutrient neutrality ensures that new homes do not increase nutrient levels in rivers, estuaries, and wetlands and in areas with elevated nutrients. If deemed unsuitable councils have the ability to block projects or remove planning permission for these houses.
Stewart Baseley, Executive Chairman at the Home Builders Federation, said it is "essential that politicians find a solution to the pointless blockade of 160k homes now entering its 6th year as a result of nutrient neutrality" claiming new homes make "a negligible contribution" to nutrient levels.
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Stewart Baseley
Stewart Baseley has been on the HBF board since 2002 and has served as its Executive Chairman since 2006. Under his leadership, following a comprehensive strategic review of the organization, HBF has become a highly respected and influential representative body. This has enabled HBF to secure various government stimulus measures for the industry, most notably Help to Buy, and ensure that policy decisions related to planning, regulation, and sustainability address the concerns of house builders.
Councils spending £50m on planning legal fees
Another issue was revealed following a Freedom of Information request by the HBF that showed over £50 million was spent on external legal advice for planning appeals by councils over the past three years.
Despite this high spending, the Planning Inspectorate approved 50% of dwelling appeals.
On average, each council spent £45,000 per year on legal advice, totalling £15 million annually nationwide, although costs varied widely, with the top 10 councils alone spending £5 million.
This shows the lengths councils are going to block planning permission requests, demonstrating the difficulty some face in gaining permission.
HBF unveils 'blueprint' to improve situation
The HBF published its blueprint for how the next Government could deliver the homes the country desperately needs. Key recommendations include:
Increasing housing supply: TheHBF calls for a clearer and more certain policy landscape, including the reinstatement of mandatory housing targets and the Five-Year Housing Land Supply, reforming the Standard Method of Housing Need, introducing a 10-year housing plan, and reviewing the green belt.
Fixing the planning process: To tackle systemic issues hindering delivery HBF has proposed a range of planning reforms such as ringfencing planning application fees for planning purposes, raising the threshold for reserved matters submissions to be determined by the committee, introducing a presumption in favour of developing small sites, and accelerating the implementation of National Development Management policies.
Housing the nation: TheHBF advocates for a new, targeted first-time buyer scheme, resolving uncontracted Section 106 units, requiring local planning authorities to assess the demand for housing for older people, expanding green mortgages, and abolishing stamp duty for homes with an A or B Energy Performance Certificate (EPC).
Unblocking the housing pipeline: TheHBF recommends resolving the nutrient neutrality issue by bringing forward legislation to unblock 160,000 homes currently on hold due to Natural England's mitigations, working with Natural England to review its nutrient mitigation calculator, extending planning permissions for homes affected by this issue, and requiring water companies to account for how they spend developer fees and invest in their networks.
Greener growth: The HBF also proposes developing a roadmap for the talent pipeline needed to deliver low-carbon, sustainable housing, publishing and implementing the recommendations of the Industrial Training Board review, reforming the Apprenticeship Levy, and implementing the Competition and Market Authority’s recommendation for a single mandatory industry consumer code and access to the New Homes Ombudsman for all new build buyers.
Stewart Baseley said: “Amidst a deepening housing crisis and with house building levels already falling sharply, these numbers present a bleak picture for future housing supply.
“The report also puts into stark perspective the challenges a new Government faces to meet its housing ambitions with a pipeline smaller than during 2009 and the depths of recession.
“Reversing the trend will require immediate and drastic action to remove the significant barriers to housing delivery we face."
News Editor Joseph has previously written for Today’s Media and Chambers & Partners, focusing on news for conveyancers and industry professionals. Joseph has just started his own self build project, building his own home on his family’s farm with planning permission for a timber frame, three-bedroom house in a one-acre field. The foundation work has already begun and he hopes to have the home built in the next year. Prior to this he renovated his family's home as well as doing several DIY projects, including installing a shower, building sheds, and livestock fences and shelters for the farm’s animals. Outside of homebuilding, Joseph loves rugby and has written for Rugby World, the world’s largest rugby magazine.
