No votes, just problems
Politicians of all parties, both national and local, know that there are no votes in development, whether it be roads, rail, commercial or housing. And if there are no votes, just problems, then you can rest assured that politicians will do everything in their power to avoid making decisions.
Over the last seven or eight years, all political parties have gravitated to letting local communities decide which developments are needed. It's all very well giving power to the people, but the ingredients make the planning application regime a nightmare.
From a housebuilder's point of view, we spend weeks and weeks in discussions and negotiations with the planning departments of various local authorities, pushing and shoving planning applications endlessly around committees: from conservation officers to highway engineers through environmental study and the like.
Eventually, a recommendation from the planning officer is received and a date set for the planning committee meeting. The planning committee consists of representatives of the local elected constituencies. The normal pattern of such meetings is that presentation of the proposals is followed by a great deal of heated discussion that usually ends in a deferral pending a site visit or further consultation with the developer.
One month later, another application is made to the planning committee and it is refused. Further negotiations are initiated, and eventually most developers decide that the only route available is appeal. In one case that comes to mind, this process has taken 14 months. We are now awaiting the Secretary of State's announcement following the appeal.
It’s all very well giving power to the people, but the ingredients make the planning application regime a nightmare
Eight-week turnaround
The government, of course, has pledged to meet an eight-week turnaround for the majority of planning decisions. Our records show that over the last two years, the average time from lodging an application for planning to the first house being built has risen from nine to 14 months. And all the costs are eventually passed on to the homebuyer.
In London, the planning process has been further complicated by the introduction of requirements for developments to provide accommodation for key workers like nurses, firefighters and police officers. Those of us who live and work in London are aware that as house prices rise, the accommodation for key workers has become increasingly difficult to find. It has, therefore, fallen to housebuilders to provide affordable housing for key workers on their developments.
In most markets, supply and demand are kept in balance by changes in prices, so that if there is a persistent undersupply the market will adjust accordingly over time. Unfortunately, this basic market rule does not apply to housing in the UK.
Long-term housing undersupply will have economic and social consequences; it will have the greatest impact on middle and lower-income households. In the London market, the rise in house prices over the last two years is inevitably going to have a further impact on this escalating problem.
Source
Construction Manager
