Planning delays, labor shortages and soaring prices for building materials all combine to drastically reduce the number of new homes under construction.
One of the most comprehensive surveys of small and medium-sized home builders in the UK – conducted by the Home Builders Federation, Close Brothers Property Finance and Travis Perkins – revealed:
– planning remains a significant obstacle to increasing housing delivery over the next 12 months, with 94 percent of SME home builders seeing delays in obtaining building permits or discharge conditions stifling the supply of housing;
– the worsening of the situation next year due to generalized local elections in May;
– some 78 percent of home builders also view the supply and cost of materials as a major barrier to delivery (up from just 20 percent last year); and
– 59% consider the supply and cost of labor to be a major obstacle (compared to 19% last year).
The survey says the construction industry is, and will continue to be, a key driver of economic recovery and says it is essential that SME builders are able to play their part in this recovery and to create a more diverse sector, with a local and thriving community. regional network of housing construction companies.
Frank Pennal – Managing Director of Close Brothers Property Finance – comments: “Developing homes takes months and years and while some of these issues are short-term, they risk leaving a lasting legacy on new supply. houses. It is important that the industry works together to overcome these problems, by encouraging young talent in the sector, reforming the planning system and ensuring sustainable supply chains.
Stewart Baseley, Executive Chairman of the Home Builders Federation, adds: “The last few decades have seen the number of SME builders collapse and the survey shows the considerable challenges the industry continues to face. Every SME I speak to suffers severely from delays in the planning process.
“SMEs literally have to shut down while local authorities delay the start of construction because their planning departments lack the capacity to deal effectively with requests. Combined with concerns about materials and personnel, planning delays threaten the demise of even more SME builders.