The property development sector is breathing a sigh of relief as the new government throws its weight behind tackling planning delays.

Planning Permission: A Major Bottleneck

A recent survey by Shawbrook Bank revealed that a whopping 74% of developers believe that the government setting clear housebuilding targets for local councils will be the key to solving the planning backlog. And it’s no wonder.

The same survey showed that developers are currently facing agonising delays for planning permission. 39% of respondents reported waiting between 4 and 6 months, while a further 33% said they were waiting 7 to 12 months.

Government Steps In With Solutions

But there’s good news on the horizon. The Chancellor’s recent announcement included a major shake-up of the planning system, focusing on:

• Clear Housebuilding Targets: Councils will be given specific targets for new homes, putting pressure on them to streamline the planning process.
• Green Belt Review: A review of green belt boundaries could open up more land for development, potentially leading to a surge in new projects.
• More Planning Officers: The government will be increasing the number of planning officers, helping to clear the backlog of applications.

Terry Woodley, managing director of development finance at Shawbrook, believes these changes are a much-needed lifeline for the sector: “The delays to planning permission have been a real drag on the construction industry, leading to slower building and stretched deadlines. The government’s focus on addressing these issues is very welcome.”

A New Era For Major Projects

But the government isn’t stopping there. They’re also taking direct control of the planning process for major infrastructure projects. This shift away from local authorities aims to tackle the “red tape” that has bogged down many vital projects.

Expert Advice For Developers

With these changes in motion, it’s a perfect time for developers to consider their next move.

Woodley advises: “Developers looking to push their projects forward should speak to a specialist broker. They can offer guidance on navigating complex projects and provide access to unique products, like Shawbrook’s planning assistance loan. This type of loan helps developers enhance existing planning permissions and then seamlessly transition into a development finance loan for construction, providing crucial support at every stage.”

The Bottom Line

The government’s new initiatives are a strong signal to developers. With a renewed focus on streamlining planning, providing financial support, and taking control of major infrastructure projects, the potential for a housing boom is real.