Just under four in five (79%) of developers surveyed in Wales believe that 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, Shawbrook says. Almost three in five (57%) Welsh developers report waiting between seven to 12 months for planning permission to be granted, it said. In comparison, 39% of developers across the UK report an average waiting time of four to six months for planning permission to be granted.
Further analysis of the figures found that the mean waiting time for Welsh based developers to gain planning permission came to eight months, showcasing just how challenging timelines can be for property developers. This has been exacerbated in some cases, with almost one in ten developers surveyed across the UK revealing that they’ve previously had their planning permission requests rejected.
In a similar vein, just under three in five (59%) developers surveyed in Wales disclose that they find it difficult to source property at a reasonable price, revealing yet another hurdle for developers to jump over. Comparably, just over two-thirds (67%) across the UK say they find it difficult to source property at a reasonable price.
Terry Woodley, Managing Director, Development Finance at Shawbrook, said:
“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.”
