Planning approvals for new homes bounce back
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Sector analysis by real estate debt advisory specialists, Sirius Property Finance, has shown that while the level of new homes being granted planning permission dipped during the first year of the pandemic, this negative trend reversed in 2021 with the third highest annual total seen since 2007.
Sirius Property Finance analysed data on the number of residential units to be granted planning permission, how this has changed in recent years and which region is due to see the biggest boost from incoming housing stock.
The figures shows that during the first year of the pandemic (2020), just 295,000 residential homes were granted planning permission, an annual decline of -10%. This was the lowest level since 2015 and only the second year on year decrease since 2010.
However, over the last year a total of 319,000 new residential homes were granted planning permission, an 8% annual increase and the third highest annual total since 2007.
London looks set to see the biggest boost to new home stock levels, with planning permission granted for 60,200 residential units over the last year, accounting for 19% of the national total.
The South East saw the second highest level with planning permission granted for 46,500 new residential units equating to 15% of the overall number.
The North West (42,300) also saw planning permission granted for over 40,000 new residential homes, while in the North East, just 13,800 planning applications were granted equating to just 4% of the total seen across England.
Managing Director of Sirius Property Finance, Nicholas Christofi, commented:
“Despite Covid complications, labour shortages and an increase in construction costs, the nation’s housebuilders have persevered during the pandemic to ensure that the delivery of new homes has been maintained.
We’ve also seen a sharp increase in the volume of planning applications being granted over the last year which suggests that there is plenty in the pipeline to satisfy the ongoing need for more housing.
While 2022 will bring its own challenges to the sector, granting the nation’s housebuilders the ability to build is the first step in increasing residential stock levels and addressing the current housing crisis.”
