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29/07/2015

New Home Planning Permissions Pass 200,000 Mark

New home planning permissions have passed the 200,000 mark for the first time since early 2008, according to the Home Builders Federation (HBF) and Glenigan.

Permissions for the first quarter of 2015 increased by 19% compared to last year.

Construction analyst Glenigan's latest Housing Pipeline reports shows permissions for 52,617 homes were granted in England during the first quarter of this year.

This is an increase from 43,926 permissions granted during the same period in 2014.

As a result, the Moving Annual Total has passed the 200,000 mark.

Figures in the report show that 203,810 permissions were granted in the 12 months to April.

The number of permissions granted in the first quarter was twice that in the corresponding quarter in both 2011 and 2012.

The HBF has said the increased number of homes being planned is extremely welcome, as the country looks to increase its housing supply.

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However, the organisation said many of the homes identified in the report still have to navigate the remainder of the planning system, a process HBF states takes 'far too long.'

The report, which measures permissions on sites over 10 units, also shows the number of sites consented has been fairly stable over the last 18 months, although it is at a higher level than the previous four to five years.

The HBF said: "Increasing the number of sites on which house builders are selling homes is absolutely key to a sustained increase in actual build numbers as more sites mean more site outlets and more construction work, while also helping small and medium-sized house builders to acquire sites and expand output."

Measures announced by the Government in the Productivity Plan earlier this month should help to both speed up the planning process and deliver further increases in the number of permissions being granted.

Stewart Baseley, Executive Chairman of the HBF, said: "One of the biggest constraints on the industry's ability to meet the new level of demand and deliver further sustained increases in build rates is the planning process.

"How quickly we get more sites to the point where we can actually start to lay bricks will be a major influence on future house building levels."

"The headline announcements made in the Productivity Plan sound very positive. What is key is that the detail is now developed and the proposals implemented as soon as is possible.

"Increasing housing delivery will provide the high quality homes our next generation needs, support thousands of companies up and down the land and create tens of thousands of jobs."

(LM)

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