Sector - Public Sector
Affordable housing slows
19 Jan 18
New research by Glenigan shows that the rise in housing association planning applications is slowing down.
A new study, analysing detailed planning applications for new-build housing made by registered social landlords (RSLs) or housing association made during 2017 shows thee number of units due to be built has slacked off from a surge of 20% in 2016.
Figures from 2018 show that while the pipeline is still growing, the surge has dissipated somewhat, with growth of 8% recorded for 2017. RSLs are still more active in terms of planned new homes, with 453 detailed planning applications submitted for ten or more units during the 2017 calendar year, which is a rise from 435 in 2016.
The number of homes included within those applications has also risen, by 8% to 25,901, while houses remain the dominant form of house type in planning applications by RSLs.
In 2017, the average detailed planning application contained 57 units compared to 55 units in 2016, but these increases are not translating into an increase in social housing work starting on site.
Glenigan economics director Allan Wilen said: “RSLs are still wrestling with changes to their funding model, which the government began pushing through a number of years ago, and continuing political uncertainty over the extension of the Right to Buy policy to housing association tenants.”
Glenigan expects the value of social housing work starting on site in 2018 to fall by 1% as safety work to estates becomes a priority following the tragedy at Grenfell in London. Mr Wilen adds: “Near term, the progress of planned developments is being disrupted as associations review the implications of the Grenfell fire for refurbishment and new build schemes.”
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