Research article

May 2011

The coalition government made an unprecedented effort to boost both economic growth and the building of new homes.

Housebuilding in England was still in decline with new build completions having reached an historic low in 2010. The coalition government was determined to boost both the economy and the delivery of new homes.

Demand for new homes was weak, and developers were struggling with the planning system. Many schemes were stalled due to unviable planning conditions imposed in a more buoyant market, and planning consents were almost half of those in 2006 and 2007.

Interview with Chris Buckle

Key facts:

Job title: Associate

Specialisation: Applied Research Consultancy

Years at Savills: 6

About Chris: Having spent 2.5 years as a rural surveyor, I joined the research team as the government policies in this article were being announced. Research consultancy, focusing on residential development, seems to be the perfect use of my chemistry degree and surveying experience.

Q Have conditions for housebuilding improved?

A All the signs are positive at the moment, with starts, completions and planning consents all increasing. However, developers are faced with increasing build costs as construction capacity expands.

Q Has demand for new homes increased?

A Help to Buy is the culmination of efforts by both the current and previous governments to boost demand. Earlier schemes (FirstBuy and HomeBuy Direct) were not big enough to have a significant impact. Help to Buy is supporting 30% of new homes sales.

Q How has the planning system coped with the changes?

A The government’s ambitions for planning resulted in the National Planning Policy Framework (NPPF), which was launched in 2012 and has been widely welcomed. Planning for full housing needs remains a challenge to many local authorities.

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