Housing Crisis Looms as Planning Permissions in England Drop to 2006 Levels

Housing Crisis Looms as Planning Permissions in England Drop to 2006 Levels

The number of housing projects granted planning permission in England has dropped to its lowest level since 2006, sparking concerns about a potential new housing crisis. This decline was partly due to a Conservative rebellion that led Secretary of State for Levelling Up Michael Gove to abandon the mandatory target of building 300,000 new homes per year.

In response, at least 55 local authorities have scrapped their plans towards reaching the government's targets. Other areas such as Buckinghamshire, East Hampshire, and North Somerset are reportedly considering similar actions. Senior industry leaders have warned that up to 77,000 fewer homes could be built annually if this trend continues – with the fewest construction occurring in regions with high demand for housing.

During an episode of Bloomberg Wall Street Week hosted by David Westin – which features market and geopolitical discussions among influential thought leaders such as CEOs and policy makers – Home Builders Federation (HBF) representatives claimed councils were abandoning their building goals due to anti-development policies from both the government and what they called "the nimby wing" within the Conservative party.

Accordingly, HBF estimates suggest house-building rates may drop significantly; potentially plummeting down to just122 ,000 units per year—a figure not seen since World War II—which would negatively impact employment opportunities along with overall economic growth across affected regions.

In February's report on industry health published by HBF itself pointed out “a hostile political attitude towards building” is responsible for these anticipated slowdowns within home construction sector .

Despite these reports however ,a Government spokesperson stated it did not recognize any figures relating specifically toward local plan abandonment or cancellations .