Planning permissions remain strong in 2016 Q2

The number of planning permissions granted for new homes in Q2 of this year remained high. The HBF and Glenigan’s latest  Housing Pipeline report shows that, at 74,400 homes, the number of units approved during the quarter was unchanged on the first three months of 2016 and 24% up on the same period last year. The year on year rise was driven by a 34% increase in the number of private housing units approved. In contrast 29% fewer social housing units were approved.

Whilst many of these permissions may still have some way to go before builders can start building them, the figures are a strong indicator of potential future supply.

Permissions have risen steadily every year since 2009, with actual housing supply also increasing markedly over the past two years as more of the permissions have progressed to the point where builders can begin building.

At 2,616, the number of private sector housing projects (schemes of 3 or more units) securing approval during the second quarter was 1% down on the first three months of the year, but 4% up on the same period a year ago.

The North East, South West and Scotland recorded the sharpest rises, being 65% 58% and 93% up on a year ago. In contrast unit approvals were lower in the East Midlands, Yorkshire & the Humber and Wales.

The Housing Pipeline report now shows permissions granted on all sites. Earlier versions did not include numbers for sites of under 10 units. All historic figures have been adjusted to reflect the change in methodology.

Click here to download the report.

Notes:

• The Home Builders Federation (HBF) is the representative body of the home building industry in England and Wales. The HBF’s member firms account for some 80% of all new homes built in England and Wales in any one year, and include companies of all sizes, ranging from multi-national, household names through regionally based businesses to small local companies: www.hbf.co.uk
• Glenigan is the UK’s leading provider of construction data, contract leads and construction market analysis. Combining comprehensive data gathering and exhaustive research with detailed statistical modelling and expert analysis, it delivers a trusted insight into UK construction trends and activity.
• The housing approvals data analysed in this report is drawn from Glenigan’s extensive database of current and planned construction projects. Glenigan’s detailed coverage of planned housing projects across the UK offers valuable strategic and tactical insights into developers’ active sights and pipeline, with sites tracked through to completion. www.glenigan.com
• ‘Permissions’ are measured when the first ‘reserve matter’ attached to the consent is approved. Before an ‘implentable’ permissions is granted that allows work to start on site, a planning obligations (S106) agreement will almost always have to be agreed and signed and all pre-commencement planning conditions attached to the permission have to be discharged. Some permissions will have up to 100 conditions attached.