Planning permissions in sharp decline

Research by think tank Centre for Cities suggests that the UK has a shortage of 4.3 million home compared with other European countries. This means that we would need to build 450,000 new homes every year for 25 years to meet demand and make up the deficit.

Against this backdrop, the latest Pipeline report from the House Builders Federation makes for disappointing reading. They confirm that the number of new homes granted planning permission fell by 10% quarter-on-quarter and by 20% compared to the same period last year. This is the lowest quarterly number since 2015 and continues a trend that began two years ago.

The HBF places the blame firmly on government policy, quoting the change in local government house building targets from mandatory to advisory, which caused 60 local authorities to pause or withdraw their housebuilding preparations. In addition, rising interest rates have dampened the market and there is no first time buyer support for the first time in decades.

The HBF warns that if these issues are not addressed, the delivery of new homes is likely to fall to 120,000 a year.

It seems that the UK housing crisis is set to continue for many years to come.