Glenigan reaction to Lyons Housing Review

Last Updated:

16th October 2014

Commenting on the release of the Lyons Housing Review today (16 October), Glenigan’s Economics Director Allan Wilén said:

“Labour’s pledge to increase the number of new homes to 200,000 a year will ensure housing remains high on the political agenda in the run-up to the general election in May next year.

“The Lyons Housing Review’s commitment to encourage more small and medium sized developers back into the sector is welcome and should help to increase the flow of smaller sites into development pipeline. Glenigan research has found that applications for sites of three to ten homes are still less likely to be granted approval than larger sites, yet these sites can be often be built out more quickly and more readily integrated in to the existing community than larger sites.

“While the shortfall of homes is a national crisis, new homes supply impacts on the local market. Developers will build out large sites progressively over a number of years, both for practical reasons and to ensure that a surge of new properties onto the market does not overwhelm local demand and blight the local housing prices.

“Encouragingly, Sir Michael Lyons has identified the planning system as a major hurdle to delivering more homes. The review believes that councils and communities have a responsibility to ensure adequate sites are identified for development in their locality and that the Planning Inspectorate must step in where sufficient sites are not provided. This appears to be a welcome endorsement of the current National Planning Policy Framework (NPPF) regime; Glenigan research has found that NPPF has helped to lift the number of planning applications and their success rate over the last three years.

“The review also proposes that new powers for councils to foster housing developments, including forming partnerships to build homes quickly and financial incentives for councils to deliver new garden cities and suburbs.

“However the Labour Party remains critical that house builders are slow to develop sites once permission has been granted. Glenigan analysis shows that the average time between approval being granted and work starting is nine months. The reasons for this time-lag are complex. Inevitably it will take time for the developer to plan the construction programme and many sites will also require preparatory works especially if they are contaminated brownfield sites.

“In addition, planning is often granted subject to the resolution of issues, such as the Section 106 agreement with the local authority. These negotiations can be protracted; action here to ensure a speedy resolution would enable work started more swiftly on site.”

Glenigan supplied housing and planning data to the Lyons Housing Review, an independent review to address issues surrounding residential construction and planning reform.

To arrange an interview with Allan Wilén, please contact Kirsty Maclagan on 01202 786842 / 07825 420321 or email kirsty.maclagan@glenigan-old.thrv.uk

Click here to read the full review.

PR contacts:

Kirsty Maclagan (Marketing and Communications Manager)

T: +44 (0)1202 786 842│E: kirsty.maclagan@glenigan-old.thrv.uk

Allan Wilén (Economics Director)

T: +44 (0)751 579 4625| E: allan.wilen@glenigan-old.thrv.uk

Notes to the Editor:

Glenigan is the UK’s leading provider of construction data, contract leads and construction market analysis. Combining comprehensive data gathering and exhaustive research with detailed statistical modelling and expert analysis, it delivers a trusted insight into UK construction trends and activity. Glenigan customers include government agencies, construction companies and suppliers of materials and services to the industry.