London’s planning approvals fell for the second year running in 2017, according to the latest GLA statistics, with a total of 69,000 units granted consent, although this figure was still above the 10-year average.
Approvals hit a high of 90,000 within the 2014/15 calendar year.
The pipeline continues to grow as more homes are granted consent than started construction each year. Around 282,500 homes were in the pipeline, at year end 2017, up from 175,000 in 2009.
Since 2009 however, the number of homes within schemes between one and 50 units has increased by just 2,000 units, while the permissible pipeline for schemes of 501 units or more has nearly doubled, going from 71,000 to 138,000.
With so many homes within very large schemes, at the mercy of the market and absorption rates, City Hall has proposed a presumption in favour of schemes of 25 units or less, if certain criteria are met.
Of the homes approved in 2016/17, 82% were for the private residential market, down from 86% a year previously. While the figure remains stubbornly high, it is the lowest level since 2012/13, and is proof Khan’s 35% policy threshold is working its way into the figures, although it is taking time.
Back in 2006/07, the pipeline wasn’t far from the policy requirement of 35%, with the social element split 30/70 between social rent and intermediate. That, however, changed, with the credit crunch and financial crash, and the following austerity and changes to viability rules.
Last year, social rent made somewhat of a comeback though after recording 3,132 unit approvals, the highest since 2011/12, and up from just 338 the previous year.
To send feedback e-mail paul.wellman@egi.co.uk or tweet @paulwellman eg or @estatesgazette
