Invest&Fund calls for planning reform

Invest&Fund has called for reform in the planning sector amid a slowdown in new home approvals and ongoing volatility in the property market.

The peer-to-peer lending platform noted that planning delays led Barratt Homes to warn that its 13-week target for planning decisions is now sitting at 18 months.

These delays have reached a point where housing developments may be mothballed altogether to free up resources to develop elsewhere, the lender said.

“Market participants reliant on raising funds once upon a time could conterminously run that process whilst planning consent was granted,” Invest&Fund wrote in a blog post.

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“These existing timescales make that tried and tested method defunct, piling further woes onto our nation’s smaller homebuilders.”

It was recently reported that planning applications in England have fallen to their lowest level in 16 years, despite the ongoing housing shortage.

“A dramatic planning reform could streamline the bureaucratic processes involved in homebuilding,” said Invest&Fund.

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“Simplifying regulations and reducing red tape can lead to faster approval times, allowing construction projects to commence sooner. This helps meet the growing demand for housing, especially in areas facing housing shortages.”

The lender added that planning reform could promote “sustainable and efficient land use” by encouraging compact and mixed-use developments to use land more effectively and reduce urban sprawl.

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