Housebuilder Redrow has warned that the planning system is under-resourced and threatening the “vibrancy” of smaller businesses.
Announcing interim results for the FTSE 250 company, chief executive Matthew Pratt said: “It is clear the planning system is now at its lowest point for a number of years. Local authority planning teams are experiencing resourcing issues, with a number of in-house planning officers choosing to leave and join the private sector. This is compounding the ongoing issues caused by a bureaucratic and unacceptably slow system.”
He added: “While we can manage these issues, it is a particularly challenging barrier for small and medium-sized housebuilders to overcome. It is in everyone’s interests to see a vibrant small and medium-sized enterprise market – building on the construction skills pool and supporting a healthy subcontractor base. All these dynamics, when working in harmony, create a positive economic multiplier effect, which benefits local economies across the country. Therefore, we would repeat our call for government to address these crucial planning problems.”
Pratt’s warning came as Redrow reported its best start to the year yet, with record first-half revenue.
The company said revenue stood at £1.05bn for the 27 weeks to 2 January, up from £1.04bn a year earlier. Earnings per share were up by 17% at 48.1p. Pretax profit of £203m was ahead by almost 17%.
Despite concerns in the market over rising build costs, Redrow said house price inflation continued to outpace those rises. The value of private reservations during the period was up by 6% year-on-year at £884m.
The company also highlighted progress in the land market, adding 3,316 plots to its current land portfolio and 2,945 plots to forward land.
The company is preparing to open its new Southern division in the summer and is now buying its first sites for the business. The scaling down of its London division is “progressing to plan”, Pratt added, with all sites not to be built on now sold.
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