The planning system is underperforming according to National Audit Office

Targets for new homes are likely to be missed by half of England’s local authorities, according to a damning assessment of the government’s housing strategy, while increasingly profitable building companies are getting away with paying less for infrastructure and more than half of councils have failed to draw up adequate plans to solve the housing crisis.

The National Audit Office (NAO) concludes that the planning system in England is “not working well” and says councils are struggling to negotiate successfully with developers, leaving swathes of the country vulnerable to either housing shortages or situations where the wrong homes are built in the wrong places. Since 2010 there has been an almost 40% real-terms cut in spending on planners, according to the public spending watchdog.

The NAO report follows claims from Conservative ministers that housebuilding is a top policy priority and that by the mid-2020s the rate will increase to 300,000 new homes a year. Between 2005-06 and 2017-18 the housebuilding rate has averaged 177,000 a year and the annual number has never exceeded 224,000.

While the number of completions has soared from around 124,000 in 2012 to 223,000 last year, the growth rate is tailing off and according to statistics we are still well below the 300,000 homes a year that the Government says we will need by the middle of the next decade. Meanwhile, house prices have rocketed, leaving a generation of young people struggling to come up with deposits in the tens of thousands needed to buy a home today. With the annual number of homes never exceeding 224,000 units you have to ask, how are we going to suddenly deliver 300,000 homes each year?Read the National Audit Office report here.

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The planning system is underperforming according to National Audit Office

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