The last few working days before the festive beak have heard strong words from the parliamentary committee tasked with reviewing the new Planning policy framework. Their main gripe was the presumption of approval for developments that did not compromise certain economic and social criteria. The wording of the new document came under close scrutiny and they asked for removal of ‘significantly and demonstrably’ when used to justify the denial of planning permission. The use of this phrase would make it very challenging in some instances to deny planning permission. So why is there so much fuss over the minor detail of this document? The reason is that this will have a dramatic effect on the number of new build developments that take place. This in turn will affect the number of construction jobs and new homes coming to market. The number of new homes that received planning permission this year is down 10% on the previous year which also produced very low levels of new build. We need to look very carefully at these figures they are currently running at around half of the demand levels. Each passing year we are storing up challenges for housing in the UK for decades to come.
In November asking prices for houses coming to market have reduced by over 3% this takes the average asking price of property down by a over seven thousand pounds. This fall in asking prices in real terms has been the largest that Rightmove has seen since 2007 and the start of the economic down turn. Many blame the situation with the Euro as a key reason that sentiment and there for house prices are taking a turn for the worst. All this tailored with a 13% reduction in new vendors really highlights the population’s new aversion to large financial decisions and commitments.