Less than half of the planning permissions needed for the development of new homes required in England were granted in the second quarter of this year.
The House Builders Federation says there were only 25,000 consents given – with around 60,000 required to meet the housing shortfall.
The HBF said the figures demonstrate why Government must ignore scaremongering about its proposals for planning, and stand firm on its commitment to growth.
Altogether, the 25,171 consents are the second lowest number of permissions granted in a quarter for five years, and are 24% fewer than those granted in the first quarter of this year.
The figure is also 23% lower than those that were granted in the same quarter of last year.
Planning permissions granted now will, in the main, be built during the next three or four years, says the HBF.
At a time when fewer homes are being built in England than since the 1920s, the HBF says the latest figures reveal the potential for intensifying the country’s housing crisis.
The report, compiled for HBF by market information provider Glenigan, also puts the recent disputes over planning policy into perspective. The National Trust and Campaign for the Protection of Rural England have both slated the Government’s proposals, saying they will result in the concreting over of Green Belt land.
In fact, the proposals allow for the development of small settlements – up to 12 homes – in the Green Belt, but only if 90% of the local community agrees.
The HBF said: “What should have been a sensible debate into the most important planning changes since the last war, has been hijacked by sensationalist and inaccurate claims from a number of anti-growth organisations determined to fight all and any development.
“Emotive and misleading claims about development on Green Belt have blighted the ongoing consultation into the National Planning Policy Framework. The draft NPPF document empowers local people, businesses and charities to shape growth in their communities. It strikes a balance between economic growth, a presumption in favour of sustainable development and existing environmental protection.
“The social effects of continuing the under-supply of homes are obvious: five million people languish on local authority waiting lists, millions more live in over-crowded and substandard accommodation, whilst first-time buyers have all but disappeared – further stagnating the housing market.”
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Comments
Paul - The market reseach and business plan i am putting together has nothing to do with selling houses I have never seen it before and based on what you have just said neither have you ;0)
Jonnie - No I am accept the figure I quoted is the mean average, however you have to accept that a majority of people earn less than the average as this is fact.
I think many argue that If the average wage is x should the average house be priced at Y (X x a multiplier of income)
The same arguement says an average house is one which would suit an average family, husband, wife and 2.4 kids (i.e a Three bed semi or terraced)
Wow!
Anyone remember the story on the 'women only' estate agency franchise, where 5 hopeful women purchased a franchise?
That was in July
http://www.estateagenttoday.co.uk/news_features/New-women-only-estate-agency-franchise-launches
They have 4 listings.
Can we have a follow up story please?
Now - do we wait with baited breath to see what new venture unhappy chappie is going to roll out for us seasoned EA's. Will we be quaking in our boots, will we be pulling out what little hair we have? Nope because we have sen it all before like Woolwoths selling houses at £99 a go and that lasted about 10 minutes and all these 'I can sell your house for 4/5 of bugger all' and hey ho they have all gone out of business. Had one local to me who advertised .7% and thought the world would rush through his door and then he was gone and a bathroom shop opened up. I suspect he went down the toilet! Tadaaaa
An Estate Agent was giving evidence about an accident he had witnessed.
The lawyer for the defendant was trying to discredit him and asked him how far away he was from the accident.
The Estate Agent replied, "Twenty-seven feet, six and one-half inches."
"What? How come you are so sure of that distance?" asked the lawyer.
"Well, I knew sooner or later some idiot would ask me, so I measured it!" replied the Estate Agent.
A couple of builders drove into their local timber yard.
One of the men walked into the yard office and said, "We need some four-by-twos."
The storeman asked, "You mean two-by-fours, don't you?"
The man said, "I'll go check," and went back to the truck.
He returned and said, "Yeah, I meant two-by-four."
"All right. How long do you need them?" asked the storeman,
The man paused for a minute and said, "I'd better go check."
After a while, the builder returned to the office and said, "A long time. We're gonna build a house."
Just a quick one before the pub, and with my sensible trousers on
Ive been involved in land and planning since god was a boy and I can assure anyone that’s a non believer the planning process is a funny old place, it’s the worst bits of local government, local politics and ‘democracy’ (every one gets / has view on the application) mixed with a massive lump of overall sillyness, red tape and costs and the need for such attention to minute detail that its pretty much a dark art.
Planning applications success ratios are nothing to do with the market, and all to do with the process being bonkers
……….right, I believe there is a cold Pironi with my name on it waiting to be slurped
Jonnie
Newbuilds where I live often stay unsold longer than anything else. There are two separate projects with properties that have been on the market for two years without a single reduction in price!
A couple of months back, while on the road, I stopped in a small town for a bite to eat. It was a nice area, as I told the staff member (a lady in her 50s). She went off on one about all the newbuilds that were ruining the town. I asked whether she would rather have enough affordable houses here for her kids to live in or have them relocate to a different part of the country in order to find somewhere to live. "I hadn't thought of it like that," she said.
What's the difference between HPC'ers and a Battery?
A Battery has a positive side.
Jonnie: Pretty much the only way that ALL properties sell for "the average price" is when you only sell one, innit? ;o)
Like the PeeBee & Son Jonnie Buyers Agency (THAT name has a better ring than your suggeston... ;oP ) idea mate - only one problem. You know how vigorously I defend property values - maybe then trying to chip at them for a living would be a mistake...
One morning a mortgage broker called his HPC’er client at work and asked to speak to him regarding his non ability in finding the perfect property in a market flooded with stock. The receptionist at the HPV'ers office, with a voice full of regret, said, "I'm sorry, sir, but your client recently died a slow, agonising death out on a project." The mortgage broker stated his condolences and hung up.
About an hour later the same mortgage broker called back and asked to speak to his HPCer client again. Again, the receptionist gave the mortgage broker the bad news: "I'm sorry, sir, but your client recently died a slow, agonising death out on a project." As before, the mortgage broker mumbled his regrets and hung up.
This pattern repeated itself each hour throughout the morning, until, at last, the receptionist recognised the mortgage brokers voice, whereupon she said to him, "Sir, why do you keep calling here when you know I'm going to say your client has recently died a slow, agonising death out on a project?"
The mortgage broker, exploding with long-suppressed maniacal laughter, gasped, "Because I love to hear you say it!".
Oh, Unhappy Chappy,
You post on averages – you point out the average salary but swiftly point out that many people don’t earn that – ive had this out with rantnrave, you either work on averages or you don’t fella, im sure the majority of houses don’t sell for the average price and all that
One or the other mate
Jonnie
@Unhappy Chappy
I get you mate, Id sussed the irony
One thing, if you are doing an online jobby then do your self a favour and make sure its really going to blow the balls off the local consumers, a stunt many in that sector have missed.
Jonnie
Six Phases of a Construction Project
Enthusiasm.
Disillusionment.
Panic.
Search for the Guilty.
Punishment of the Innocent.
Praise & Honors for the Non-Participants.
Johnny i dont have a problem........I am very happy (my nic is irony) and I'm not looking to move or purchase another property....i am also not HPC'er as Peebee will verify. I am however thinking of a new business venture that is sure to irritate many estate agents in my area! :0)
However I assure you Johhny properties that are priced below 100K in BN post are priced that way for reason but im sure that property would be perfect for the right person.
Nice job.
Peebee, looks like you could be a buyers agent mate, you’ve solved mateys problem quick as a flash, lets set up ‘Jonnie Peebs Property Search’ – HPC guys give us your salary, deposit and postcode and well do our bit, bosh, cant believe we’d never done it before, damn it well do it for free / love.
……………………. Obviously we know Unhappy Chappy is going to say this gaff is no good for him, bloomin’ punters, always want what they cat afford eh?
So Unhappy – over to you sir, shall I arrange a viewing?
Jonnie
Unhappy Chappy:
http://www.rightmove.co.uk/property-for-sale/property-32540828.html
LESS THAN 3x single salary; 10% deposit.
I rest my case. ;o)
Peebee I'll give you some figures without any of my thoughts or views
Average salary in my area is £28,749,
Note the average is not what the majority earn
Average house price in my area £274,000
Average flat £204,335
One bedroom Flat £150K
Post code BN1,2,3
"...one thing you can say is we are all old troopers and there is not one dollop of hair gel used between us."
On my part only because, Jonnie, I have VERY LITTLE HAIR LEFT!!
And every day the Brit1234s of this world make me rip out a few of the remaining strands... ;o)
@BRIT1234
……………………you keep doing this, you post a load of stuff that makes sense and is based on your (bit of ) knowledge and we all start to think you are coming round a bit then you go a fluff it and start oinking on about stuff you have no understanding of – on top of that my old son you are now a regular here and obviously enjoy the interaction with EA’s so ask some questions first from people that know, just a thought…….
Along with my online father Peebee I have been accused of being and old fart and along with Ace and some of the others one thing you can say is we are all old troopers and there is not one dollop of hair gel used between us.
So, whilst HPC and EA’s cannot find common ground on where / when / if / how much by / over how long house prices are going to change there is a lot of knowledge here that you could use and all of it will tell you that builders are not slow to obtain planning for new stuff to keep the price of their current stock high – the workings of a regional (meaning significant) house builder are very complex and I couldn’t cover it all here.
In short – if you are going to spend time here then at least expand your knowledge / benefit from the time you are devoting…………..it will stop people thinking you are a bit simple / gobbing off about issues you have no understanding of.
Jonnie
howie: "Average salary in my area is £19,417 ...average house price in same area is £168,765 with flats starting at around £100k and houses from about £150k."
Humour me, please. Give me a postcode within three miles of your location.
Just the first three/four characters. Or just a general area/town.
Go on... you've got nothing to lose - and everything to gain. That seems to be the HPC mantra...
Brit1234: "Builders don't want to build new homes as it lowers the existing homes prices. They don't want that and want to keep them artificially high."
Sorry - you mean what?? Why would builders want to keep the prices of EXISTING homes high? Builders BUILD! The reason that they are not doing so at present is that building costs are rising and potential sale prices are falling. Unless they have to, they are better sitting it out.
"More building decreases the value of their land banks, after all builders primary responsibility now is high land bank values. If land banks fall in value they will be seen as bankrupt."
Builders land banks are exactly that - land that they have 'banked' over the course of several years. Some they will have paid buttons for; some they bought height-of-market. Building on it reduces their land-bank COSTS. If they have to write down the value of the land, then it further affects the profitability of the site. Question is, whether the write-down is more cost effective than sitting it out...
If a builder develops some of the land in their land bank, then they seek to replenish. They will then agree at today's price. As land values have reduced over the last three years, then they will get more land for their money for future build.
It is called swings and roundabouts. Ask Barratt, Persimmon, Bellway... the list goes on. They have been through these challenging times again and again. They are still there, building away - so they must know something you don't.
(Quite a lot, actually...)
I've just listed 14 Brand New Homes on an Affordable Housing Scheme, buyers will paying between £47k and £67k @ 50%.....It is going to be interesting to see how well these will sell.
Our second hand market is moving okay, a little sluggish but moving......
I am mainly interested to see how many lenders will say "no" to lending on the Shared Ownership basis....I know I will get the interest, low prices, very low rents and the option to buy out after 12 months.....BUT here is one for HTL will £4k to £7k be easier to save up and will the best deals be offered because of the nature of the purchase?
@PeeBee. Correct.
@Brit1234. Do you understand Supply & Demand? That is what will eventually set prices. This is a capitalist country - builders will not build unless there is a profit - do you blame them?
The problem is 2 fold.
There are plenty of properties available to nuy on the 2nd hand market.
There are plenty of "stock" new homes that are built and on the market ready to move into.
There is a need for more AFFORDABLE homes.
The property market needs to come down by at least 20%(maybe excluding London) for people to afford on current salaries.
Average salary in my area is £19,417 ...average house price in same area is £168,765 with flats starting at around
£100k and houses from about £150k. Prices have to come down before loads more overpriced new ones are built.
Builders don't want to build new homes as it lowers the existing homes prices. They don't want that and want to keep them artificially high.
More building decreases the value of their land banks, after all builders primary responsibility now is high land bank values. If land banks fall in value they will be seen as bankrupt.
The numbers of permissions granted in one quarter is relatively irrelevant - unless it continues as a trend.
There are permissions already granted to cover the next three years requirement - the problem there is that in many instances the permissions will simply sit idle until market conditions improve.
Many developers are simply extending the life of their permissions before they expire.
I was listening to a diuscussion on the radio about this the other day and planning permission isn't the issue. I can't remember what it said was, so a bit of a useless point really.
Why build so many new homes when there isn't a big enough demand for the ones that we already have??