Shawbrook research highlights the sector's current challenges
Nearly three quarters (74%) of UK developers believe that government-imposed targets for local councils would be key to resolving the planning issues plaguing the sector, according to new research from Shawbrook.
The study highlights ongoing challenges in the industry, including a shortage of new homes and rising construction costs, which have made it increasingly difficult for developers to advance their projects.
The research found that 39% of developers face average waiting times of four to six months for planning permission, while 33% report even longer delays of seven to 12 months. Only 19% experience a shorter waiting period of one to three months, and none of the respondents had their planning permission granted in under a month.
On average, developers wait seven months for planning approval, underscoring the difficulties in project timelines. These delays are further compounded by rejections, with 10% of developers having had their planning applications turned down.
The research also reveals that sourcing property and land at reasonable prices is a significant challenge for many developers. Over 20% of respondents said they struggle to find both property and land at affordable rates. Additionally, more than 40% report difficulty in securing reasonably priced property, though not land, while over 10% face the opposite issue.
Terry Woodley (pictured), managing director of development finance at Shawbrook, acknowledged the sector’s recent struggles, noting that planning delays have hampered construction output and extended project timelines. However, he expressed cautious optimism in light of recent government announcements.
“The chancellor’s recent speech to the Treasury may provide some relief, with the introduction of clear housebuilding targets, a review of green belt boundaries, and an increase in planning officers," Woodley said. “Given our research on the impact of planning challenges, it is encouraging to see the government addressing these issues early in their tenure.”
Woodley also pointed out that the chancellor’s plans to shift planning decisions for major infrastructure projects from local to national authorities could help streamline the process.
“This could potentially prevent projects from getting bogged down in red tape, a common issue for developers,” he added.
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