03/09/2009

Planning Applications 'Levelling Out'

There is good news of sorts for the construction industry this month.

Data just published shows that planning applications by UK housebuilders for new developments have begun to stabilise.

There were an estimated 459 planning applications submitted in July 2009 and while poor when compared to 1,402 in July 2007, the trend is now slightly upward.

According to Glenigan - which combines comprehensive data gathering and research with detailed statistical modelling and expert analysis to deliver insight into UK construction trends - housing applications have stabilised.

There's still a long way to go as the average number of monthly planning applications has plummeted from 1,291 in 2007 to 902 in 2008 and then to a monthly average of just 494 for the period from January to July this year.

However, while recovery is at a 'low level', the planning applications for new private housing schemes now look steadier - possibly with the recent decline halted - having reached the 'bottom of the curve'.

The numbers of applications submitted in each month of 2009 to date were January: 539; February: 485; March: 542; April: 475; May: 447; June: 513 and in July, an estimated 459 applications.

Allan Wilén, Glenigan's Economic Director, commented: "The flow of new planning applications has steadied in recent months, but remains a far cry from the number of applications seen a couple of years ago.

"The latest data demonstrate that housebuilders remain focused upon building out existing schemes and still have a large pool of sites with planning approval upon which to draw as the market gradually improves.

"Whilst some housebuilders are now looking to add to their landbanks, the latest data suggests that there will be no rush to bring forward acquired sites for development," he said.

See: www.glenigan.com

(BMcC/KMcA)

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