Fewer new homes in the pipeline

The housing crisis in Britain looks set to get worse because of an inadequate planning system that is delivering fewer new homes despite the fact that the housebuilding level is at its lowest since 1920s while council waiting lists continue to grow.

Figures released today in the Home Builders Federation's (HBF) latest Housing Pipeline report reveal that just half the volume of required new homes are actually being built because far too few approvals are being awarded for the construction of much needed new residential properties.

The report shows that approvals for just 32,900 new homes across England were granted in Q3 of this year, down 10% on the corresponding period last year. This number is half the 60,000 permissions required to build the new homes needed to meet demand - and half the permissions granted each quarter in 2006 and 2007.

The dearth of new homes being built will almost certainly exasperate the existing housing crisis. The social effects of continuing to undersupply homes are obvious. With five million people languish on local authority waiting lists, millions more live in over-crowded and substandard accommodation, whilst first-time buyers have all but disappeared - further stagnating the housing market.

The HBF insist that the figures demonstrate clearly why Government must do more to help housebuilders and stand firm on its proposals for planning and commitment to growth, if the other positive measures announced recently to boost housebuilding are to have a chance of succeeding.

The report also shows that the volume of social units approved in Q3 fell 58% compared to Q3 2010, while the overall number of new homes approved in the first nine months of 2011 fell 17% against the same period last year.

Furthermore, the quarterly average in 2011 is now 33,280 new homes compared to 38,500 in 2010 and 64,500 per quarter at the height of the market in 2006 and 2007.

It is estimated that an additional 140,000 new homes a year are needed to meet existing demand. Economically, delivering these required properties could create half a million jobs.

The Government is currently considering responses to its consultation on the National Planning Policy Framework that will provide the nuts and bolts of its new planning system. Its draft proposal empowers local people, businesses and charities to shape growth in their communities. It strikes a balance between economic growth, a presumption in favour of sustainable development and existing environmental protection.

Speaking today, Stewart Baseley, executive chairman of the HBF, said: "These figures demonstrate clearly why Government must stand firm and deliver a robust planning system that provides enough land to meet the nation's housing needs. Its recent Housing Strategy contained some very positive measures, but if they are to bear fruit, the planning system must be fit for purpose.

"Continuing to under-deliver housing is storing up huge social and economic problems for the years ahead and it must be addressed.

"Building the homes we need would take millions off social housing waiting lists and enable beleaguered first time buyers to buy their own home. It could also create half a million new jobs, so giving the country a huge economic boost."