Spencer J McCarthy said regulatory burdens had resulted in higher build costs for the retirement housing developer

Under-resourced planning departments and red tape forced more than half of Churchill Living’s planning applications through the appeals process last year, its chief executive has said.

In the retirement living developer’s results for the year to 30 June 2024, company CEO and chair Spencer J McCarthy said that while Churchill had achieved successful planning consents for 499 units across 12 sites (compared with 771 in 2023), the majority had been won through appeal.

Spencer J McCarthy, Chairman & CEO, Churchill Retirement Living

Spencer J McCarthy, chair and chief executive of Churchill Living

He said the business achieved seven planning appeal wins out of nine decisions during the year, which he claimed was above the national average success rate.

McCarthy blamed the need to appeal on “under-resourced local planning authorities, a labyrinth of red tape and delays caused by negotiations on affordable housing, phosphates and nitrates bureaucracy”.

Churchill is set to begin work on 12 new sites during 2025.

The company recorded a drop in revenue in the year, from £174m to £149m, as well as a decline in pre-tax profit, from £17.7m to £3.86m

McCarthy said confidence in the customer base was “relatively low throughout the year due to the wider economic and political backdrop”.

He also said the business’ build costs had continued to be affected by increasing regulatory burdens, recording an 11.9% increase.

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The chief executive said the challenging period had been reflected in the business’ “carefully measured approach” throughout the year and that lower consumer confidence had meant a reduction in unit sales from 431 to 400.

Dean Marlow, chief financial officer, attributed the decline in average sales price (from £369,000 to £351,000) to a change in geographical mix, with a higher proportion of sales coming from lower priced areas.

He said he expected to see demand for the firm’s product increase as inflation eases and interest rates come down. 

Churchill manages more than 230 later living developments for more than 10,000 older people.

 

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