Delays and rising costs in the planning system
are driving small companies away from house building and slowing
down attempts to tackle Britain’s housing crisis, a report claims
today.
New research from NHBC Foundation shows that
small builders are experiencing “deeply frustrating” delays, with
a third waiting more than a year for local authority planning
approval and nearly 80 per cent experiencing a significant hike
in planning-related fees in the last two
years.
The NHBC Foundation report ‘Small
house builders and developers: current challenges to
growth’ outlines the climate faced by small
firms, using the experiences of almost 500 companies who
typically construct less than 10 homes a
year.
The report highlights the fact that the number
of small firms active in house building continues to decline,
accounting for just 12 per cent of market share in 2015, compared
with 28% in 2008.
Earlier this year, the Government pledged
“radical, lasting reform” to tackle Britain’s housing shortage,
including accelerating the planning system by making it more
accessible and increasing its support for small and more
innovative builders.
Commenting on the report, NHBC Head of Research
and Innovation Neil Smith said: “While the planning process is
recognised as a necessary control, small house builders and
developers continue to express considerable frustration with it.
The increasing complexity, time taken to achieve a decision, and
the unpredictability and inconsistency within the planning
process are slowing the delivery of new homes and, in some cases,
causing companies to leave this market.
“Greater certainty and more standardised
approaches, clarity concerning the fees and tariffs, coupled with
a more responsive service from planning departments would
increase predictability and significantly help to speed up the
process, thereby increasing the number of homes
built.”
The report found that the lack of viable
building land was also a major barrier for small house builders
who raised concerns about shortage of skilled workers and a lack
of interest among young people in becoming
apprentices.
The main findings are:
-
Planning -
More than a third (38%) said a sluggish, costly and
inconsistent planning process was posing a major challenge to
their business.
-
Land
availability - The lack of available
land at a suitable price has become a more acute problem for
small builders with 37% identifying it as their most serious
obstacle for growth
-
Availability of
finance - Although still a major
concern for 20%, this issue has improved in the last two years,
with more small builders obtaining finance from banks or
private sources.
Despite their concerns, the majority (58%) of
small builders were optimistic about the future of the industry
with two thirds anticipating an increase in the number of homes
they would build over the next two years.
The report contains a number of recommendations
by the NHBC Foundation for government and industry to address
these barriers and help boost the small house-building
sector. These include:
-
Planning -
Speed up decision making, reduce inconsistencies and provide a
clear tariff system.
-
Land
availability - Increase the
availability of smaller sites that could accommodate up to 10
homes.
For more information and to download the
publication, please visit: https://www.nhbcfoundation.org/publication/small-house-builders-and-developers-current-challenges-to-growth/
