Industry News Taking care of the under 10s
A recent Home Building Federation (HBF) report pointed to a surge in residential planning approvals towards the end of 2012 – up over 60 per cent on the number of units approved last year. HBF members are primarily drawn from the largest devel- opers but plan-ning regime changes have of course also been helping developers of far more modest schemes. This unusually stark piece of good news from out
of the planning system has come from a number of factors: • Actual Planning Reform: There has been, without doubt, a genuine shift in the balance in
Detailed Plans: New Housing Projects January - February 2013
10-49 Units 6%
2-9 Units 36%
favour of developers since the start of planning reforms in March 2012. Even the HBF goes as far as to say there has been a ‘potential improvement’ in the planning system.
• Perceived Planning Reform: Many developers perceive a more positive planning regulatory envi- ronment and are simply submitting more schemes for consideration. With an average 83 per cent approval rate for residential schemes – more submissions lead to more approvals.
• More Positive Economy: Whether real or per- ceived, highly incentivised or illusionary, there has been more optimism than pessimism about the prospects going forward for the housing sector. More confidence means more proposals and hence more approvals. Around 90 per cent of planning applications
involve less than 10 units. There were nearly 5,500 proposals for projects under 10 units submitted for planning approval to local authorities across the UK during January and February. It is this large volume of small schemes that have arguably benefitted the most from a more benign planning and economic backdrop. The big news is that the smaller scale residential
Single Build 56%
Over 50 Units 2%
project pipeline remains consistent and robust. And while a comparative trend analysis of smaller schemes is less established, there is good evidence of positive pipeline growth built up over recent months. The further good news is that smaller proj-
Detailed Plans: New Units January - February 2013
Single Build 8%
2-9 Units 19%
10-49 Units 20%
Over 50 Units 53%
ects form the primary basis for future jobs for tens of thousands of small and medium sized contractors and construction supply firms across the UK. However, like it or not – and many environmen-
tal groups don’t – it is less than 10 per cent of schemes that propose to contribute over 85 per cent of the UK’s new housing units. Smaller schemes produce the overwhelming
majority of tender opportunities, benefit from reduced lead time in both planning and financing and can even attract the support of environ-mental groups. Could the construction industry help itself a little bit more by focusing a lot more on smaller residential schemes?
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