New UK home approvals hit a 14-year low with ‘too few planning permissions’ granted

New UK home approvals hit a 14-year low with ‘too few planning permissions’ granted One industry leader commented that there are ‘too few planning permissions coming forward to meet the country’s housing needs’ - Bookmark - CommentsGo to comments Become an Independent member to bookmark this article Already a member? Log in Planning approvals for new residential properties fell by a fifth during the most recent quarter, according to fresh data. The Home Builders Federation stated that the findings offer "compelling evidence" to back the government’s decision to launch a new equity loan scheme intended to help first-time buyers and increase housing construction. Findings show that 45,315 residential units secured planning permission in England throughout the second quarter of the year, representing the lowest quarterly figure recorded since 2012. Across the year to the second quarter, 214,515 properties received permission, marking the lowest annual output since 2013. This is an eight per cent drop on the previous year and 36 per cent below 2017 levels. Neil Jefferson, chief executive at the Home Builders Federation, says: “These figures show a housing pipeline being squeezed to historically low levels, with too few planning permissions coming forward to meet the country’s housing needs. “The cumulative impact of higher taxes, increasing costs and layers of new policy requirements is making more and more sites unviable, while weak demand has been compounded by the absence of meaningful government support for first-time buyers and a lack of affordable mortgage lending. “The prime minister’s announcement of a first-time buyer support scheme is a hugely welcome step, and we look forward to working with Government to ensure the scheme is accessible to as many potential purchasers and home builders as possible.” Andy Burnham recently announced the new ‘Your First Home’ scheme will give savers access to a mortgage with just a 2.5 per cent deposit. A loan with 20 per cent of the property’s value will also be available to help pay for the purchase as part of the scheme. Announcing the scheme ahead of Labour’s annual conference, the prime minister said: “Too many young people are struggling with the cost of housing, with many giving up hope of ever having a home to call their own. “So we will step in to help more first-time buyers onto the housing ladder, especially those who can’t call on the bank of mum and dad. “Your First Home will get them the keys to their own front door, and give builders the confidence to deliver the high-quality new homes the country needs. This Labour government is bringing back hope for people across the country.” Funding for the scheme is expected to come from reprioritising existing government budgets, with housing developers also set to pay towards running costs. The policy builds on the Help to Buy scheme, which ran from 2013 to 2023 under previous Conservative administrations. Around 380,000 people were able to buy a first home through the scheme, with an official review of the scheme earlier this month finding that it delivered £25bn in social value over the lifetime of the scheme. Join our commenting forum Join thought-provoking conversations, follow other Independent readers and see their replies Comments