Funding for planners is a Budget priority, say housebuilders

Three in five (60%) housebuilders say they want to see increased funding for planning departments in next week’s Budget, according to a new poll.

Knight Frank’s latest quarterly survey of housebuilders found that new support for first-time buyers (56%) and a cut to stamp duty (49%) were the next-most popular policy demands after more planning resources.

Of the 50 housebuilders surveyed for the third quarter report, 60% said the reinstatement of mandatory housing targets was the most or second-most effective move made by the new government so far.

This was followed by plans to increase resourcing for planning departments (50%) and making it easier to build on greenbelt land (40%).

The housebuilders surveyed by the global property consultant are responsible for building around 70,000 homes per year in England. 

Around 85% of them said that the sector does not have the capacity to deliver more than 1 million homes over the next five years, which would mean falling significantly short of the government’s 1.5 million target. 

This included 45% who said that delivery would only reach one million across the period, while the other 40% think the sector’s capacity is even lower.

Charlie Hart, head of development land at Knight Frank, said she believed the housing targets could be achievable, “but only through a fundamental shift in how we approach housing delivery”. 

She said the traditional greenfield housebuilder model needed to be supplemented by “a multi-faceted strategy that embraces the full spectrum of the market”, including build-to-rent, affordable housing, co-living and senior living developments. 

“Significant global capital stands ready to invest in UK housing – the demand is clearly there; but first we must create the right conditions,” she added.

“Addressing planning constraints, strengthening support for housebuilders, enhancing housing association funding, and introducing smarter buyer incentives are key areas the government should be focusing on.”