Sophie Horgan, director of Dudley-based Horgan Homes, considers the challenges facing companies like hers.
There’s no doubt that times are extremely tough for housebuilders and property developers currently. But if we were hoping for a solution to the biggest thorn in our side – planning – at the recent Budget, we were left seriously wanting.
Of course, it’s quite right that due diligence needs to be done so quality housing, which contributes positively to communities, can be built. However, the hoops we have to jump through before even putting a spade in the ground are immense – the red tape, the planning delays, the meetings, the reports, the emails. It’s gruelling.
The Home Builders Federation reported that the number of housing projects granted planning permission in Q4 last year fell below 3,000 for the first time since the data set started in 2006. And the number of projects in 2022 given permission fell well below the 2017 level of 21,000 to under 12,500.
We know Michael Gove, Secretary of State for Levelling Up, Housing and Communities, has already back-pedalled on the previous target of building 300,000 new homes a year under pressure from backbenchers. And while that might give him short term political gain, I’m sure it will cause long term economic pain.
We have a number of sites in the Midlands and Lincolnshire that have been in development for 16 or 17 months. We’ve faced obstacle after obstacle before we can even get to a point where we can consider starting work on site. That’s no good for cash flow, our supply chain or the economy which relies so heavily on a buoyant property market.
Targets or no targets, the planning system is at breaking point. Delays are the norm, it’s often impossible to speak to an officer and it’s no longer fit for purpose. Those working in planning are often just doing their best in a system that is in desperate need of an overhaul.
So what’s the answer? I know the changes I’d like to see.
A radical rethink of the whole system and more resources and staff to support beleaguered planning departments. But, at the moment, it doesn’t appear to serve the Government’s purpose to speed up planning approvals. So we’ll just keep on as we are, battling a broken system to try and get our schemes over the line.
I do wonder how long it will be before the Government and local authorities join up the dots about the effect this is having on the economy and action some real and tangible change before the planning system implodes. By the time they do, I’m pretty sure it will be too late for some housebuilders and property developers.
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