LONDON, Sept 19 (Askume) – The number of planning approvals for homebuilding in Britain has fallen to the lowest level in more than a decade, an industry report said on Thursday, creating challenges for a new government push to boost homebuilding.
Figures from the Federation of Home Builders, the industry’s main trade body, show almost 230,000 homes were granted planning permission in the 12 months to June, the lowest level in a 12-month period since 2014.
Data compiled by analytics firm Glenigan also shows that the second quarter of 2024 will see the lowest number of building approvals in a decade.
British Prime Minister Keir Starmer’s Labour Party won a landslide victory in July’s election.He announced mandatory housing targets and planning reforms for the Parliament of England to boost economic growth.
The government hopes to build 370,000 new homes each year in the UK, compared with a target of 300,000 under the previous Conservative government.
Neil Jefferson, HBF chief executive, said: “The huge fall in planning permissions is a clear indication of the challenges the new government faces in increasing housing supply.”
The number of building sites and housing consents in England has been falling since 2022, while new housing development has reached its lowest level since data collection began in 2006, HBF said.
Although the UK property market has recently improved with low borrowing costs, prices and rents have risen due to a lack of housing supply.
According to official data, rents rose by 8.4% till August.Home prices increased 2.2% during the same period .
The Bank of England, which cut interest rates to 5% last month, kept borrowing costs unchanged on Thursday as it awaited signs that inflation risks could ease.
