Author Topic: Planning changes: National Planning Policy Framework - A House Builder's dream  (Read 7437 times)

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Philofacts

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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.

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Fred

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So could it be that house builders now have access to green field sites and an easy ride through planning?
Will they then reduce the price of the houses they build as a result?


The Prophet

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Developers have paid for access to Conservatives to discuss "property related issues" during breakfast meetings.
See Property Forum Topic for more.

Philofacts

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So could it be that house builders now have access to green field sites and an easy ride through planning?
Will they then reduce the price of the houses they build as a result?

According to statistics in The Times, only 10% of land in England is developed and 50% of this can be accounted for by gardens.
Overall, houses and flats account for just 1.1% of land use.
No doubt the house builders will use this fact and regulate the number of new homes they build each year to maximise their revenues.
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