Housebuilders have predicted that the cost of building properties will rise by up to 10% over the next 12 months.
The housebuilders, responding to a survey by lobby group Design for Homes, said the cost increases were the result of complying with the PPG3 rules that were issued by the government to all English planning authorities in March 2000.

The guidelines' objectives include increasing the density of homes by building more flats and small houses instead of large detached houses.

PPG3 also aims to reduce the amount of development land dedicated to car parking by limiting on-plot parking.

The report, carried out by Maven Management, involved interviewing 83 housebuilders and designers.

Forty-four per cent of housebuilders found that the time between identifying a site and developing it has increased by up to six months as a result of the new regulations. Eight per cent reported that the build time has increased by more than a year.

The report also found that in 12 months the mix of housing will consist of more terraced houses and flats, with a 5% drop in detached properties.

Postscript

Copies of the report are available from Design for Homes on 08704-163378.