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A pipeline of projects but housing continues to be held back…

The value of schemes approved by local planning authorities rose by 11 per cent in the three months to February.

According to the latest data released by industry tracker Glenigan and new government data, the number of approved commercial planning applications also increased by 9 per cent last year, when compared to 2020.

Published statistics from the Department of Levelling Up, Housing and Communities (DLUHC) showed that a total of 7,800 applications for commercial developments and offices were approved last year.

This increase comes alongside a 15 per cent annual rise in overall planning submissions in 2021 when compared to 2020, with a sum of 474,100 applications received for residential and commercial builds.

This growth, however, is not replicated in the number of schemes making it onto site.

Research shows that the value of project starts on-site dropped in the three months to February by 17 per cent – more than a quarter lower than the same period in 2021.

Specific sector performances have been described as ‘mixed’, with materials and skills shortages still affecting the industry, along with supply chain issues and geopolitical issues.

The pandemic has continued to hold the industry’s recovery back and the fallout continues to do so. With the added pressure from the Ukraine situation, supply chains are going to squeezed even more – increasing demand and price.
This may mean that contractors look to push back starts until the availability of building products becomes more reliable and cost-effective.

However, it is hoped that the issues look to resolve themselves for Q2 to mirror the pipeline of activity and planning consents.

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