"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"
- Terry Woodley - Shawbrook
74% of developers believe that the government setting targets for councils would be the key to unlocking planning issues faced by UK developers, according to the latest research from Shawbrook.
This comes as issues such as the shortfall in homes being built and rises in construction costs have plagued the sector, making it harder for developers to push forward with projects.
In fact, 39% of developers report an average waiting time of 4-6 months for planning permission to be granted, with 33% revealing an even longer waiting period of 7-12 months. Only 19% 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.
Further analysis of the figures found that the mean waiting time for developers to gain planning permission came to 7 months, showcasing just how challenging timelines can be for property developers. This has been exacerbated in some cases, with one in ten developers revealing that 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.
Terry Woodley, Managing Director, Development Finance at Shawbrook comments: “The sector has had a tough time of late, with delays to planning permission leading to sluggish construction output and stretched timelines.
"However, the Chancellor’s recent speech to the Treasury will likely be a source of optimism, with additional support in the form of clear housebuilding 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.”
“Additionally, developers will be watching closely to see how an overhaul of the planning system plays out. 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. For example, at Shawbrook we offer a Planning Assistance Loan which helps developers enhance the planning already agreed for a site.
"From this loan, developers can transfer seamlessly to a development finance loan to build the project, making it a useful product for those looking for additional support.”
