Almost three-quarters – 74% – of developers feel that the government setting targets for councils to build homes will unlock planning issues, research from a lender found.
A poll of UK developers conducted by Shawbrook revealed that 39% of respondents waited an average of 4-6 months for planning permission to be granted.
Meanwhile a third said they waited longer, at an average of 7-12 months. Just 19% of developers had a 1-3-month wait for planning permission to be approved.
Shawbrook’s survey found that no developers were able to say they had waited less than a month for approval.
Altogether, the average wait time for a developer seeking planning permission approval was seven months.
A tenth of developers said their planning permission requests had been rejected.
More than a fifth of developers said they found it hard to obtain both property and land at a reasonable price, which Shawbrook said indicated another hurdle for those in the sector.
Two-fifths of respondents said they had difficulty finding property at a reasonable price but not land, while a tenth found it harder to source land for good value.
Development sector has gone through a ‘tough time’
Terry Woodley, managing director, development finance at Shawbrook, said: “The sector has had a tough time of late, with delays to planning permission leading to sluggish construction output and stretched timelines. However, the Chancellor’s recent speech to the Treasury will likely be a source of optimism, with additional support in the form of clear housebuilding targets, a review of green belt boundaries, and an increase in planning officers being announced. With our research revealing just how detrimental planning challenges are for developers, it’s positive to see the new Government addressing them early on in their premiership.”
He added: “Additionally, developers will be watching closely to see how an overhaul of the planning system plays out. The Chancellor announced that planning decisions for major infrastructure projects will shift away from local authorities and towards national ones. In theory, this should stop projects from being snagged and delayed by red tape, which has become a common pitfall for developers.
“Those looking to move projects forward should consider speaking to a broker, especially one in a specialist space, as they can help navigate more complex cases and offer unique products. For example, at Shawbrook, we offer a Planning Assistance Loan [that] helps developers enhance the planning already agreed for a site. From this loan, developers can transfer seamlessly to a development finance loan to build the project, making it a useful product for those looking for additional support.”
Shekina is the deputy editor at Mortgage Solutions and commercial editor at Mortgage Solutions and Specialist Lending Solutions. She has nearly eight years of experience in the B2B publishing market, having previously covered the hospitality, retail, pet, accounting and jewellery sectors.
Shekina has worked for Mortgage Solutions and Specialist Lending Solutions for almost five years. Here, she covers the market’s breaking news stories, engages with professionals in the sector, and oversees any commercially agreed content in partnership with mortgage-related companies.
This includes presenting webinars and hosting roundtable discussions on developing themes in the mortgage sector.
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