Private housebuilders ramp up plans ahead of planning reforms

Latest News Tue, Feb 11, 2025 7:27 AM

Private housebuilders applied to build more new homes last year ahead of changes to relax the planning system promised by the new Labour government.

Exclusive construction industry research by Glenigan showed that privately owned housebuilders and developers applied to build 116,481 homes in detailed planning applications submitted in 2024.

This latest figure was an increase of 3% on the previous year and came ahead of the new Planning and Infrastructure Bill. This bill is aimed at reducing the red tape holding back housebuilding and to help meet a government target of building 1.5 million homes in this parliament.

Barratt applied to build the most homes in 2023 and bolstered this position last year after merging with Redrow.

Plans for new homes submitted by the newly enlarged Barratt Redrow business last year ranged from 194 units at Denview Road in Aberdeen (Project ID: 22102224) to proposals for 406 houses at Colney Lane in Norwich (pictured) (Project ID: 25016803).

Persimmon retained second place after proposing to build more than 12,000 homes. These proposals ranged from plans for 58 houses at Greatham Avenue in Stockton-On-Tees (Project ID: 24366056) to 163 units in the Simpson Parkway development in Aberdeen (Project ID: 20097573).

Taylor Wimpey had slipped to fourth in 2023 behind Bellway but leapfrogged its rival to go back into third place after applying to build nearly 8,000 homes in detailed applications last year.

Taylor Wimpey’s 2024 planning programme included further phases at ongoing developments such as Newton Lays in Buckinghamshire (Project ID: 14010243) and Dolphingstone in Lothian (Project ID: 24088200).

House type shift

Glenigan’s industry analysis suggests larger schemes are being planned and a gradual shift in house-type is emerging in the planning pipeline.

The average detailed planning application submitted for new private housing in 2024 contained 142 units. This figure is an increase from an average of 126 units per application in 2023.

Houses remain the dominant form of house type but there was a 45% increase in the number of apartments included in planning applications last year.

This was partly due to an increase in proposals for new retirement housing, which is predominantly apartments. In 2024, there was a 24% increase in the number of retirement housing units planned.

McCarthy Stone applied to build the most retirement housing with proposals for more than 1,100 homes. This total ranged from 53 flats in Wellingborough (Project ID: 23175501) to 48 sheltered apartments in Macclesfield (Project ID: 24329637) and helped rank the group in 19th position overall.

Private housing starts expected to rise

With the government easing red tape, housebuilders are expected to ramp up production and Glenigan forecasts a 13% rise in the underlying value of new private housing starts (schemes valued up to £100 million).

“A strengthening in economic growth and further interest rate cuts are expected to further buoy house-buyers confidence during 2025 and 2026,” says Glenigan economics director Allan Wilén. “This is forecast to support a strengthening in new housing activity as rising house sales encourage developers to accelerate the development of existing projects and open new sites.”

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