New Housing Pipeline

Quarter 3, 2017 Report

The residential development pipeline remains strong. The third quarter saw renewed strengthening in approvals after the slight cooling during the previous three months. The number of units approved during the quarter was 6% up on the second quarter of 2017 and 9% higher than during the same period last year. The year-on-year rise was driven by a 17% increase in the number of private housing units approved which more than offset a 36% drop in social housing units approved. Overall the number of residential units approved during the first nine months was 18% higher than during the same period of 2016.

Glenigan recorded the approval of around 90,400 residential units1 during the third quarter of 2017; at 78,600 units, housing schemes of ten or more units accounted for 87% of approved units; the remainder being on smaller new build projects including self-build schemes, homes included within non-residential projects, and the conversion of nonresidential properties. 

At 2,941, the number of private sector housing projects (schemes of 3 or more units) securing approval during the third quarter was 5% up on April to June 2017 and 2% higher than during the corresponding period a year ago.

The growth in the number of units granted planning permission on private sector projects has been more marked. Over 81,200 private units were granted permission during the third quarter, an 8% rise on the preceding quarter and 17% ahead of a year ago.
At 154, the number of social housing projects (of three or more units) increased after the sharp decline seen during the second quarter. The number of project approvals was 16% up on the preceding three months and 1% ahead of the third quarter of 2016. However, the average scheme size has declined, prompting a fall in the number of social housing units approved, which at 5,936 was 13% down on the second quarter and 36% lower than a year ago.
Most parts of the country saw a rise in units approved during the third quarter compared to the same quarter of 2016. 

Unit approvals in Yorkshire and the Humber and in London were down 15% and 25% respectively against strong approvals levels a year ago. Approvals in the South West were 4% down. The number of units approved in all other parts of the country were ahead of a year ago. The strongest growth was in the East Midlands, South East, North East, and East of England where approvals were respectively 40%, 31%, 73% and 32% up on the third quarter of 2016.

Table 1: Number of residential units approved

Overall unit approvals in Great Britain during the first nine months of 2017 were 18% up on a year earlier, with firm growth down the east coast of England, in the South East, the Midlands and in Scotland and Wales. The South West was the only
part of the country to see a decline during the first nine months, with the number of units approved 7% down on a year earlier.

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