Some regions looked more promising than others in Q2 2024. Yorkshire and the Humber, the North West, and the North East all had planning permission granted for more homes than the annual minimum according to the current iteration of the Standard Method.
Build-to-rent completions have also hit the highest level on record, as 22,157 homes were finished in the year to June 2024. Q2 2024 was the second-highest second quarter on record for investment, thanks to strong letting rates. But both starts and completions in this sector are starting to plateau.
In light of the dwindling housing supply flow, the government has announced a series of changes to the planning system in order to promote more development. According to Savills, a significant boost in planning permission volumes if needed for house building to take off under the new government.
Part of the government’s proposed changes to planning include a new method of calculating housing needs. This system will focus on stock levels as opposed to projections of population and household growth. They have also revised the building targets to 370,000 homes a year instead of the current 295,000. Savills states that under the new method, more areas will be designated as failing to meet housing needs based on current delivery.
