A fall in the number of planning applications being submitted by developers is more likely due to a shortage of available land and changes in planning legislation rather than a fear of being left with surplus stock, according to the chief executive of developer Westleigh Developments Chris Beighton.
He has dismissed industry experts’ claims that falling demand, higher house prices and a reluctance to have units sitting empty are to blame for a 6% drop in applications to build new homes in the UK in February.
Mr Beighton said he cannot believe builders are being deterred because of falling demand, adding that there is still plenty of requirement for all types of housing in the Midlands.
He added: “If builders are struggling to find suitable sites to build, then of course it’s going to have a knock-on effect on planning, but that doesn’t mean they’re not planning to keep on building. It just means they can’t put in a formal application until they’ve found a suitable site.”
Figures show 14,678 applications to start new homes were made in February, a 22% increase on the previous month but 6% down on February 2004.
Overall, applications have been dropping. In the last quarter of 2004 there was a 1% decrease on the same period in 2003. Of 42,113 applications, 37,318 related to private sector activity, a 1% decrease on the same quarter of 2003.
Stocks of unsold properties have risen sharply over the past year leaving the outlook for prices broadly negative, but a slight rise in applications last month – combined with a 1% increase on new build completions – could mean things are looking up.
