‘Comical’ planning rules thwart housing recovery, says Morgan
THE housing market is recovering but it is still being held back by a lack of mortgage availability and “comical” planning constraints, according to Redrow’s founder and chairman Steve Morgan.
Mr Morgan, who retired in 2000 and returned following a boardroom coup last March, said Redrow now spends more money on planning than on bricks.
In the half year to December 31 sales at the housebuilder increased by 25% to £187.2m while legal completions rose 21.5% to 1,266.
The average selling price rose by £5,000 to £145,500. Redrow, based at Ewloe near Chester, narrowed its losses from £46.2m last time to £8.7m.
Mr Morgan said the company’s fortunes had also been helped by a £150m rights issue which enabled it to cut debt by 11%, and its decision to focus on “traditional” family housing. But he complained that the company’s growth was thwarted by red tape.
“Since my return to Redrow some 11 months ago, I have been dismayed by the
sheer levels of bureaucracy and red tape that have crept into the planning system. The list of documents required to accompany planning applications verges on the comical.
“Even the simplest of planning applications frequently takes many months to secure approval and indeed there are many examples where the months turn into years.”
And he called on the Government to introduce an indemnity scheme that would allow lenders to provide 95% mortgages again. The absence of these mortgages, said Mr Morgan, was keeping first time buyers out of the market which is creating a “logjam” further down the chain.
