Housebuilder on track to hit profit goal but sales have slowed in recent weeks
The chief executive of Crest Nicholson has urged the government to press on with planning reforms, in a trading update ahead of the Autumn Statement later today.
Peter Truscott, chief executive of the housebuilding giant, in a trading update for the year to 31 October, said he hopes that “repeated commitments to reform the planning system will be delivered in the near term”.
He said: “These changes should focus on releasing more land which can be immediately developed, helping the UK fix its longstanding shortage of housing stock.”
The comments come as chancellor Jeremy Hunt prepares to deliver his Autumn Statement later today, which many are hoping will provide clarity about the government’s planning reform policy. With the return of Michael Gove as housing secretary, it is expected the bulk of his levelling up and regeneration bill, including street votes and local design codes, will be retained. Gove earlier this week himself pledged to stop ‘ugly housing’
However reports have suggested that the bulk of Liz Truss’ planning policies, including investment zones – areas of the country which would benefit from streamlined planning and reduced regulations – will be ditched.
Crest Nicholson also said it is on track for its adjusted profit in the year to be between £135m and £140m as previously expected. Its sales per outlet week (SPOW) rate was 0.55 over the year but trading has been “weaker” in recent weeks “reflecting the increased economic uncertainty” it said.
>>See also: Crest Nicholson posts £52m half-year loss due to cladding pledge costs
>>See also: Autumn Statement: social housing rent cap reportedly to be set at 7%
Its forward sales stood at 2,038 units as of 11 November down year-on-year from 2,502 in the same period last year.
Autumn Statement: asks from industry
Brian Berry, chief executive of the Federation of Master Builders said: “As the Chancellor prepares for the Autumn Statement, he faces an enormous challenge to revive the UK’s economy. Ensuring we have a planning system fit for purpose is key to the country’s future success, which why overstretched planning departments need to be protected from any further cuts. Small, local house builders have had declining output for decades. The last thing they need is the planning system grinding to a halt as we enter a recession.
“The government has made it clear it wants greater diversity and quality in housing, which is what local house builders deliver day in, day out. Unfortunately, they are currently hamstrung by a painfully slow planning system. The government must ensure small house builders receive support from local planning teams, otherwise SME housing delivery will continue to dwindle.”
Adam Lawrence, founder, London Square, said: “The government needs to address the planning system which is holding up the supply of new homes.”
Paul Brocklehurst - chair of LPDF, said: “The planning system isn’t working and whilst levelling up and regeneration bill measures may come through in the medium to long term action is required now to strengthen the national planning policy framework to ensure delivery of land through the system. We need to ensure planning authorities get on with plan-making and they need to stop delaying because they think there will be lower numbers expected of them in the future.
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