The Nathaniel Lichfield Partnership (NLP) have produced a very good report on a number of aspects of the development process in the housing sector. It has a major focus on build out rates looking at the causes of delay between the grant of planning permission and its execution. It even discusses the role of land promoters and the use of options and (unusually) presents some actual hard evidence
Analysis by NLP of Glenigan data for sites outside London with ‘live’ outline planning permission shows that just 21% of units with outline permission are on sites of over 100 units where permission was obtained by volume house builders. Interestingly, the public sector itself (such as the HCA, NHS Trusts) has 15% of ‘live’ outline permissions. Well over half of units with outline permission were secured by non-house builders with the intention to sell to a house builder.
There’s still a lack of clarity about the extent of land banking by non-developers. At a panel discussion yesterday here at the university, a land buyer for one of the large volume residential developers stated that they were being outbid on some tenders for sites with planning permission by international investors. Start of trend or a minor aberration?