The ultimate success of the government’s New Homes Accelerator programme could hinge on its potential to find immediate solutions to the complexity of the current planning process for new developments, according to a property development finance expert.
The New Homes Accelerator programme aims to unblock and accelerate the delivery of more than 200 delayed large-scale housing developments across the country by leveraging government resources and fostering collaboration between local authorities and developers. The programme invites developers looking to accelerate their schemes to submit an online application by the end of October.
Richard Nowell, Senior Relationship Director at Secure Trust Bank Real Estate Finance, has welcomed the focus provided by the scheme but warns that it may not be enough to provide a short- to medium-term fix to the current challenges facing the planning process for developments, particularly those operated by SME housebuilders.
Richard said: “Over recent years, complexity surrounding planning applications has only grown, causing developments and schemes of all sizes to stall. The unlocking of government resources will undoubtedly aid the delivery of up to 300,000 homes, but this will take time, so we still need an immediate solution to the drawn-out planning process.
“Housing developers across the country are struggling, with long waiting times, contractor insolvencies, and inflation all casting financial uncertainty over future property development funding. It’s vital that we put an end to the rising number of developers dissuaded from doing business in the UK over recent years, and the New Homes Accelerator should only be seen as a starting point to this.”
Without an immediate solution to the uncertainty surrounding the planning application process and the wider real estate market, Richard is encouraging developers to work closely with lenders to ensure that projects that receive the green light have the best possible chance of success. Developers that inform lenders of difficulties they foresee will also help to avoid risk and save additional stress.
Richard added: “The thought of 200 large-scale developments across England finally kicking into action is promising for the future of the market, but it’s important that we hear more about immediate fixes to the barriers currently inherent in the planning determination process for developers, regardless of their size.”
“As experts in residential property development finance, we have a longstanding record of working with developers when unforeseen circumstances arise and are on hand to offer the necessary guidance and risk assessment amid these uncertain times.”
Visit the Secure Trust Bank Real Estate Finance website for more information, or its dedicated finance for property development area
