The house builders await the proposed changes to the planning process that could mean a "presumption in favour of development" should the Government’s National Planning Policy Framework be approved and adopted.
Both the Campaign for Rural England and the National Trust are alarmed at the potential for building large numbers of new homes in large areas of the UK countryside. Behind the government’s thinking is that the planning system is blocking house building and created a shortage of available building land for house building. This is in turn, pushing up land values and therefore house prices artificially and the an explanation of the current shortage of affordable new homes being built.
However, it should be noted that house builders currently own around 300,000 plots with planning approval. Figures also show that over 80% of planning applications are approved.
House builders are choosing to build fewer new homes to maximise their profits currently building 107,000 new homes this year, compared with 183,000 in 2006.
Recent figures from Redrow Homes show they increased pre tax profits to £25.3 million up from £700,000 last year due in part due to the average selling prices increasing 12% to £174,100 from £154,800 last year. Redrow’s current land cost is also up from £34,000 to £49,000 per plot reflecting land acquisitions in London after the opening of their new regional office.
