New Homes Boost for Labour as developers backs local targets

Some 74% of developers believe that the government setting targets for councils would be the key to unlocking planning issues faced by the new-build sector, according to research from Shawbrook.

This comes as issues such as the shortfall in homes being built and rises in construction costs have plagued the sector, making it harder for developers to push forward with projects. 

In fact, a majority (39%) of developers report an average waiting time of four to six months for planning permission to be granted, with a similar number (33%) revealing an even longer waiting period of seven to 12  months. Only 19% say they have an average waiting time of between one and three months, and no developers surveyed were able to say they’d waited less than a month. 

Further analysis of the figures found that the mean waiting time for developers to gain planning permission came to seven months, showcasing just how challenging timelines can be for property developers. This has been exacerbated in some cases, with one in 10 developers revealing that they’ve previously had their planning permission requests rejected. 

In a similar vein, more than one in five developers disclose that they find it difficult to source both property and land at a reasonable price, revealing yet another hurdle for developers to jump over. Comparably, more than two-fifths say they find it difficult to source property at a reasonable price but not land, and well over a tenth say they find it difficult to source land at a reasonable price but not property. 

A Shawbrook development finance spokesperson says: “The Chancellor’s recent speech to the Treasury will likely be a source of optimism, with additional support in the form of clear housebuilding targets, a review of green belt boundaries, and an increase in planning officers being announced. With our research revealing just how detrimental planning challenges are for developers, it’s positive to see the new government addressing them early on in their premiership.

“Additionally, developers will be watching closely to see how an overhaul of the planning system plays out. The Chancellor announced that planning decisions for major infrastructure projects will shift away from local authorities and towards national ones. In theory, this should stop projects from being snagged and delayed by red tape which has become a common pitfall for developers.”