Small house builders are experiencing ‘deeply frustrating’ delays and rising costs in the planning system, housing standard-setting body finds.
New research from NHBC Foundation has revealed a third of small builders waited more than a year for local authority planning approval and nearly 80% experienced a significant hike in planning-related fees in the last two years.
The report – entitled Small house builders and developers: current challenges to growth – also highlighted the number of small firms active in house building continues to decline, accounting for just 12% of market share in 2015, compared with 28% in 2008.
The lack of available land at a suitable price has also become a more acute problem for small builders with 37% of the 500 companies who took part in the research identifying it as their most serious obstacle for growth.
The NHBC’s research did reveal that the availability of finance was less of an issue for small developers than it used to be. While it was a major concern for 20% of respondents, more small builders reported obtaining finance from banks or private sources.
Commenting on the report, NHBC head of research and innovation Neil Smith said: ‘While the planning process is recognised as a necessary control, small house builders and developers continue to express considerable frustration with it.
‘The increasing complexity, time taken to achieve a decision, and the unpredictability and inconsistency within the planning process are slowing the delivery of new homes and, in some cases, causing companies to leave this market.
‘Greater certainty and more standardised approaches, clarity concerning the fees and tariffs, coupled with a more responsive service from planning departments would increase predictability and significantly help to speed up the process, thereby increasing the number of homes built.’
The NHBC’s report coincides with a Communities and Local Government Committee report that found that the eight largest building firms build more than half of all new homes in the UK.
It also urged Whitehall to do more to help small house builders and make the housing market more competitive.
