NEW HOME PLANNING APPROVALS BOUNCE BACK AFTER PANDEMIC DECLINE

Research by real estate debt advisory specialists, Sirius Property Finance, has shown that while the level of new homes being granted planning permission dipped during the first year of the pandemic, this negative trend reversed in 2021 with the third highest annual total since 2007.

The research shows that during the first year of the pandemic (2020), just 295,000 residential homes were granted planning permission, an annual decline of -10%. This was the lowest level since 2015 and only the second year on year decrease since 2010.

However, over the last year a total of 319,000 new residential homes were granted planning permission, an 8% annual increase and the third highest annual total since 2007.

London looks set to see the biggest boost to new home stock levels, with planning permission granted for 60,200 residential units over the last year, accounting for 19% of the national total.

The South East saw the second highest level with planning permission granted for 46,500 new residential units equating to 15% of the overall number.

The North West (42,300) also saw planning permission granted for over 40,000 new residential homes, while in the North East, just 13,800 planning applications were granted equating to just 4% of the total seen across England.