By Adrian Watts, Chief Executive Officer at Croudace Homes
The Home Builders Federation (HBF) reported that in 2024, planning permissions for new homes developments hit the lowest point in a decade. Yet conversely, at Croudace Homes, we achieved some of the highest levels of planning approvals granted in the same timeframe. This is a positive market indicator, and signifies that SMEs should have reason to be hopeful.
The planning crisis has been well-documented – anyone working in the housebuilding industry needn’t look far to see the near-daily headlines at times that tell of stalled developments, flat planning refusals, and other critical delays, all of which are hindering our collective ambition to boost housing output. Yet behind the headlines, we are seeing a different reality.
In 2024, we saw planning permission granted for 747 homes across nine developments, including Aylesford in Kent and Upper Cufaude Farm in Basingstoke, Hampshire. This represents one of the highest numbers of planning approvals Croudace has seen in recent history. So why – and indeed how – in a year that has seen chronic national delay is Croudace able to celebrate this success?
Let’s be clear – the schemes we received permission for in 2024 were not the result of a quick-fix planning
We all know that the planning application is rigorous, and rightly so, when we are considering the impact of new homes developments within local communities. Our team work exceptionally hard to forge meaningful relationships with planning teams in each local authority in which we build, taking on board feedback and being prepared to have sometimes difficult conversations to agree outcomes. In our view, SMEs are uniquely positioned to achieve this compared to major developers, since our portfolio tends to be focused on a smaller number of sites comparatively, enabling the team to have a more bespoke approach to each local authority.
One of the biggest misconceptions in our industry is the idea of land banking, where developers are accused of sitting on land with planning approval until market conditions improve. The Competition and Markets Authority (CMA) last year confirmed that it is planning, rather than land banking, that is a development blocker.
Housebuilding is a vital component of the country’s economy, and the recent changes to the National Planning Policy Framework (NPPF) provide a promising step forward to get Britain building. The Government has committed to planning reform, and this is a hugely encouraging step forward, particularly for SMEs who are hit much harder by planning delays than volume housebuilders. The biggest impact undoubtedly are the costs associated with planning delays, which can quickly rise to hundreds of thousands and are ultimately out of the question for SMEs.
The NPPF’s changes in part will streamline the planning process and clarify regulations, which will help reduce time and costs, particularly for smaller developments. For larger sites targeting Green Belt land, the so-called “Golden Rules” will further provide assurance to SMEs during the bidding process, as there are clear criteria that must be met. My hope is that NPPF changes will also allow for SMEs to scale up their housebuilding without compromising on quality.
The government has further stressed its committed to supporting SME housebuilders just this week, promising to cut the red tape around planning approvals on developments with 10-49 homes, with the aim of levelling the playing field for developers. Is it therefore optimistic to suggest that there is a light at the end of the tunnel for SMEs? Perhaps – but perhaps not, as the tide is turning in our favour. Optimism breeds ambition, and this is what we need to inspire the housebuilding industry, get building and boost much-needed housing supply up and down the country from all developers.