The Federation of Master Builders says the government’s plan to extend planning permission for new builds by a further three years is a welcome boost to the ailing building industry.
In his first speech as housing minister, John Healey said the government would introduce a new mechanism to allow planning permissions to last for up to six years after consent.
Planning permissions that are not used currently expire after a three-year period. But the economic downturn has meant that many new developments do not have the funding to begin construction during this time span.
Under the government’s plans, local authorities will be given temporary powers to extend that period to up to six years.
Brian Berry, director of external affairs at the FMB, said the plans were “a sensible measure” at a time when “housebuilding is on its knees”.
“This measure will help ensure that new developments are kept on track in a very difficult economic climate,” he said.
Mr Berry said the housing minister now needed to build on the initiative to get house building back on its feet. “His next move should be to allow cash generated from council house rents in the 206 council housing organisations across England to be ploughed back into building more social housing rather than left to sit in a national pot waiting for redistribution,” he said.
“The government needs to allow councils to operate in a similar way to housing associations who can borrow freely and keep the cash generated from rents to plough back into their businesses.”
