The HBF’s new quarterly report on planning permissions being granted by Local Authorities across Britain revealed that in the third quarter of last year 36,411 new build plans gained approval.
This was down 7% on the previous quarter and 18% on the the same period of 2009.
It was also in sharp contrast to 2007 and 2008 levels, which recorded a peak of 66,802 in Q1 2008. Nevertheless, it remained significantly above the low of Q2 2009, which saw planning permissions number just 25,162.
In 2009, the number of new houses built over the year reached its lowest level since 1923.
Stewart Baseley, executive chairman of the HBF, said: “The report paints a bleak picture and shows how permissions, the lifeblood of housing supply, have plummeted.
“We already have an acute housing crisis and these figures show there is potential for it to get much worse. The social and economic implications of this would be a disaster for the country.”
HBF highlighted that the effect of the slump in permissions will not be felt for some time, as permissions granted for homes typically take up to three years to build.
However, it added that Britain faces an estimated housing shortfall of one million homes and projections show that 232,000 homes need to be built a year until 2033 in order to meet demand.
The report showed that the drop in planning permissions granted since the beginning of 2010 coincided with significant changes to the planning system by the coalition government and a shift from top-down targets to a new local-based approach that gives more power to councils.
Baseley said: “The government cannot afford to let confusion over planning policy reduce further the number of permissions given. Whilst the policy vacuum of the past few months is now being filled, it is vital government gets on and implements its new policies.
“It must ensure Local Authorities accept responsibility and the power they have been given. It is crucial councils recognise the housing shortage, understand the new system and appreciate the govternment’s incentives and allow developers to build the homes their residents and the country desperately need.”
