England Residential Planning Applications Grants Decline Over Last 4 Years
New research conducted by Monta Capital highlights a concerning trend in England's housing sector, with residential planning applications grants seeing a significant decline over the past four years. This downturn comes at a time when the country is grappling with a severe housing shortage, necessitating the construction of 300,000 new homes annually to meet demand. The study, focusing on data collected from 2018 to 2023, presents a detailed analysis of how planning bureaucracy may be exacerbating England's housing crisis. According to the Monta Capital analysis, the year 2018-19 saw 46,808 residential planning applications granted, encompassing both minor and major housing projects. However, this number began to wane in the subsequent years, dropping by 6.6% in 2019-20 to 43,701. The most significant decrease occurred in 2020-21, with a 10.9% fall. The trend persisted into 2021-22 and 2022-23, recording declines of 2.7% and 8.3%, respectively, culminating in only 34,785 grants in the latest year reviewed. This continuous reduction in granted applications starkly contrasts with the urgent need for large-scale housing developments. The Monta report sheds light on the disproportionate impact of this decline on major residential projects, defined as those comprising ten or more dwellings or having a total floor space exceeding 1,000sqm. In the year 2022-23 alone, application grants for such developments plummeted by 11.5%, a steeper fall than the 7.8% decrease observed in minor development grants. This pattern, with major developments consistently facing higher rates of decline than their minor counterparts since 2018, underscores the challenges in addressing the housing shortage. Thomas Balashev, Chief Executive of Monta Capital, emphasized the critical role of high-volume developments in solving the housing crisis. He noted, "To come close to the government's target of 300,000 new homes per year, it's imperative that planning permissions for major developments are significantly increased." Balashev's comments highlight the need for a streamlined planning process that can facilitate the delivery of large-scale housing projects essential for mitigating the housing shortfall. As England continues to navigate its housing crisis, the findings from Monta Capital's analysis serve as a wake-up call to policymakers and stakeholders. With each year of decline in residential planning application grants, the dream of addressing the housing shortage becomes increasingly elusive. This situation calls for urgent measures to reform planning processes, enabling the swift and efficient delivery of the homes that England so desperately needs. The future of the nation's housing landscape hinges on the ability to embrace change and foster development, making it imperative to act now to reverse this troubling trend.
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