Three-quarters (74 per cent) of developers believe the government setting targets for councils would be “key” to unlocking planning issues, research from Shawbrook has revealed.
The research found that 39 per cent of developers reported an average waiting time of 4-6 months for planning permission to be granted, with a similar number (33 per cent) revealing an even longer waiting period of 7-12 months.
Only 19 per cent say they have an average waiting time of 1-3 months, and no developers surveyed were able to say they’d waited less than a month.
Shawbrook managing director of development finance, Terry Woodley, said: “The sector has had a tough time of late, with delays to planning permission leading to sluggish construction output and stretched timelines."
However, Woodley added that the chancellor’s recent speech to the Treasury will likely be a “source of optimism” to developers.
Woodley explained that Rachel Reeves’s recent speech promised “additional support” in the form of clear house building targets, a review of green belt boundaries, and an increase in planning officers being announced.
“With our research revealing just how detrimental planning challenges are for developers, it’s positive to see the new government addressing them early on in their premiership,” he added.
“The chancellor announced that planning decisions for major infrastructure projects will shift away from local authorities and towards national ones.
“In theory, this should stop projects from being snagged and delayed by red tape which has become a common pitfall for developers.
“Those looking to move projects forward should consider speaking to a broker, especially one in a specialist space, as they can help navigate more complex cases and offer unique products.”
Further analysis of the figures found that the mean waiting time for developers to gain planning permission was seven months.
Shawbrook argued this shows how challenging timelines can be for property developers.
It also found that this has been exacerbated in some cases, with one in 10 developers revealing they’ve previously had their planning permission requests rejected.
In a similar vein, more than one in five developers disclose that they find it difficult to source both property and land at a reasonable price, revealing yet another hurdle for developers to jump over.
Comparably, more than two-fifths say they find it difficult to source property at a reasonable price but not land, and well over a tenth say they find it difficult to source land at a reasonable price but not property.
tom.dunstan@ft.com
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