A leading construction industry body has revealed a
large increase in the number of planning approvals; a key indicator of economic
growth.
The Home Builders Federation (HBF) released their
latest Housing Pipeline report last week that revealed a 49% increase in
planning approvals across England during the second quarter of 2013. Whilst this
represents a 9% decrease on quarter one of 2013, the half year figure versus
2012 is up 16,053 approvals, representing an increase of 26%. This national
picture of recovery is matched with figures in Duchy Timber’s back yard;
Cornwall, Devon and Somerset.
In the South West, the actual number of permissions
granted by local councils reached 4,519, up 22.7% from 3,682 in quarter two of
2012. This also marks a very healthy rise from this figure’s lowest ebb of only
2,506 homes in quarter two of 2009.
Stewart Baseley, executive chairman of the HomeBuilders Federation, said:
“The overall trend in residential permissions is very positive. It reflects house builders’ increasing confidence in the market and also the positive principles of the new planning system. With Help to Buy forging ahead strongly and developers looking to increase output, we need to see the increase sustained.”
There was however a marked reservation in the tone of
the report and the accompanying press release, positive though the figures might
appear:
“Despite the increase in permissions granted, we are still well short of the 220,000 permissions required annually to meet housing need and all parties need to work closely together to ensure we see continuous and steady increases moving forward”, said Mr. Baseley.
The figure that Mr. Baseley is quoting is the amount
of annual demand projected by the Department for Communities and Local
Government (DCLG) in their most recent ‘Household Projections’ report in April
this year. The latest figures show that the number of households in the period
2011-21 will grow by over 220,000 per year – down on the previous estimate of
232,000. Read together, these two reports show that demand could sustain a
further 27% growth in new projects, great news for an industry that is
recovering from one of the biggest recessions in history.
In the South West region, 27% growth would represent
5,279 more homes built every year. Whilst controversial for some, this
increased industry would create hundreds of much needed jobs directly in the
industry and yet more in associated sectors like that occupied by Duchy Timber
in Cornwall and Devon.
The report is based upon analysis of housing
projects being tracked by researchers at Glenigan. The firm's Economics Director,
Allan WilĂ©n, said:“The current strengthening in housing market activity points to a further potential rise in planning approvals during the second half of the year as house builders bring forward sites for development during 2014.”
