Introduction:
In a recent study conducted by debt advisory specialists, Sirius Property Finance, the landscape of property development in the UK has been illuminated. By analyzing key statistics, including the average monthly total planning applications submitted, the success rates of these applications, and the number of applications granted, the study has identified the regions of Britain that are poised for a property building boom. These findings shed light on the areas experiencing high levels of development activity and provide valuable insights into the current state of the market.
Northern Ireland, the North East, and Wales:
High Success Rates but Low Application Numbers. The research indicates that Northern Ireland boasts the highest average monthly success rate for planning applications approved, with a remarkable 95% of all applications given the green light each month. The North East closely follows with a 92% success rate, while Wales excels at 97%. However, despite these impressive success rates, these regions also exhibit some of the lowest average monthly totals of planning permission submissions. In fact, they account for only 0.5%, 2.3%, and 3.8% of the respective successful planning applications.
The South East:
A Prominent Building Boom in 2023 Contrary to expectations, the South East emerges as the region set for the most significant building boom in 2023. With an average of 4,491 planning applications submitted each month, the South East leads the pack. Although only 84% of these applications receive approval, this still amounts to a remarkable 3,772 successful applications every month, contributing to 18.4% of the UK’s total. These figures demonstrate the tremendous development potential in the South East.
London:
Quantity May Be Limited, but Quality Prevails Despite having the lowest percentage of successful planning applications at just 75% across the UK, London continues to be a hub of development activity. The capital sees 3,444 successful bids every month, accounting for 16.8% of the national total. This indicates that even though the success rate may be comparatively lower, the sheer volume of applications in London reflects its enduring appeal for property development.
The East of England, South West, and North West:
Powerhouses of Successful Applications The study also highlights the East of England, South West, and North West as regions with high levels of successful planning applications. With success rates of 12.7%, 10.4%, and 8.3%, respectively, these regions contribute significantly to the monthly tally of approved applications across the UK. Their active engagement in property development exemplifies the prevailing confidence in these areas.
The Market Outlook and Expert Opinion:
Nicholas Christofi, the Managing Director of Sirius Property Finance, emphasizes the resilience of the UK property market despite the economic uncertainty of late 2022. Christofi points out that the concentration of developments in higher-value regions, such as the South East and London, indicates a robust level of market confidence. These findings suggest that fears of a property price downturn are largely behind us. Furthermore, the study’s encouraging revelation that the majority of planning applications are being approved bodes well for the future health of the market. The ability to build and deliver new stock efficiently will help prevent future periods of market stagnation.
Conclusion:
The study conducted by Sirius Property Finance offers valuable insights into the state of property development in the UK. While Northern Ireland, the North East, and Wales boast high success rates, the South East is leading the way with its remarkable building boom. Despite its lower success rate, London remains a hotspot for development. The East of England, South West, and North West also contribute significantly to the UK’s development landscape. These findings collectively indicate a positive outlook for the property market