The Local Government Association (LGA) has found more than 423,000 houses in the UK have been granted planning permission by the government but have yet to be built, with developers taking eight months longer to build homes than in 2013/14
In 2015/16, the number of unimplemented planning permissions in England and Wales was 365,146, and in 2016/17 rose to 423,544.
The LGA study finds developers are also taking longer to build new homes, at an average of 40 months from schemes receiving planning permission to building work being completed.
Some might consider the statistics could lead a cynic to: ‘Easily conclude that developers are deliberately delaying projects in order to maintain the supply/demand balance in their favour.
‘It will be interesting to see whether the recent news on developers signing up to a new voluntary scheme, agreeing to release new build homes up to £350,000 to Londoners first, ahead of overseas investors, will have any impact on these rather depressing statistics.’ Some Industry experts may see the statistics revealing a possible deliberate delay by developers to increase demand in London, in view of the upcoming voluntary scheme to release houses up to £350,000 to Londoners first could rectify this issue.
The LGA said this data reveals the importance of councils being given greater powers to take action on unbuilt land which has planning permission, and argued the government should scrap the cap on council borrowing so council could build affordable new homes more rapidly.