In the Housing Pipeline report, created by Glenigan and the Home Builders Federation (HBF), strong demand for new homes from the Help to Buy scheme saw permission for 321,982 new homes granted in the most recent 12 months.
HBF said the figures demonstrate the confidence of builders as first-time buyers continue to use the Help to Buy scheme to get on the housing ladder. More than 200,000 people, the vast majority first time buyers, now live in a new build home as a result of the Help to Buy scheme that was introduced four years ago.
However, while the overall number of planning permissions is at a high, there are still industry concerns as to how long many of these permissions will take to process to the stage they can actually be built – in many cases three to four years.
Further concerns include whilst the number of actual houses granted permission is rising, the number of sites they are on continues to drop, indicating bigger sites are increasingly being allocated.
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The HBF said the industry needs to see a mix of site sizes being given permission and is urging local authorities to allocate more smaller sites.
Stewart Baseley, Executive Chairman of the HBF, said the Government also needs to confirm the future of the Help to Buy scheme post 2021, as well as proposals as outlined in the White Paper "moved forward and implemented".
"These record planning permission figures are a clear indication that housebuilders are committed to increasing housing output," he said.
"We've seen 50% growth in output over the last three years and these figures indicate that progress can continue.
"The Help to Buy scheme hasn't just helped 200,000 people buy a home; it has helped them to buy a new build home which is, in turn, boosting supply and generating huge benefits for communities, councils and the Exchequer.
"While the availability of mortgages has improved since 2013, without Help to Buy, a first-time buyer would once again be forced to find tens of thousands of pounds just to fund a deposit.
"Ultimately If people can buy, builders can build and confidence in demand is crucial to future build rates. The figures show that if demand for new homes remains strong and the planning system processes applications efficiently, further increases in build rates can be delivered in the coming years.
"We need to see confirmation from Government as to the future of the very successful Help to Buy scheme post 2021. We also need to see the proposals to improve the planning system outlined in the White Paper moved forward and implemented.
"The industry has demonstrated its commitment to increase output. We now need to see decisive policy decisions that will enable the ambition to build more to be delivered."
And it seems the HBF has got its wish, with the Government announcing today, 02 October, it would invest a further £10 billion in the Help to Buy Equity Loan, meaning the initiative could help around 135,000 more people to buy homes by 2021.
(LM)
