New statistics have revealed that planning permissions granted to developers for new homes in England dropped significantly in the second half of 2010.
The New Housing Pipeline quarterly report, which was published today by the Home Builders Federation (HBF), says that planning permissions dropped from 40,453 in the first quarter of 2010 to 31,553 in the third quarter.
The Home Builders Federation has called the decline “alarming”, but the drop is probably primarily due to the ongoing confusion surrounding the Government’s proposed changes to the planning system (click here for more details.)
As I have been saying in previous posts, and which this new report highlights, it is vital to developers and the housebuilding industry that the Government implements its new policies as soon as possible, so that this policy ‘vacuum’ is filled.
The eagerly-awaited court hearing between the Government and Cala Homes (South) Ltd will help to bring some clarity to the situation, and it is expected to take place in the week beginning 17 January 2011. Cala is seeking a declaration from the High Court that the Government’s intention to revoke the Regional Strategies is unlawful. Click here for more details.
For developers, it’s once again a case of wait and see…
UPDATE: The Localism Bill will have its Second reading in the House of Commons on 17 January 2011. To see how the Localism Bill will impact on planning, please click here.
