Morgan lauds new planning regime

REDROW chairman Steve Morgan has welcomed the government’s plan to shake-up the planning system, calling the new National Planning Policy Framework “the biggest change to planning policy in decades”.

Speaking ahead of the company’s annual general meeting today, Morgan said: “Providing its principles are not watered down it should produce a speedier and more balanced planning system and a platform for the growth in new house building which the country desperately needs.

“The existing planning environment remains frustratingly slow and costly, with far too many local authorities using the current hiatus as an excuse to impede and delay planning applications.

“As an indication, Redrow alone has 30 live planning applications for 5,219 plots, which are either delayed beyond the 13-week statutory determination period or subject to appeal.”

He will also update shareholders on the company’s trading for the 17 weeks since its year end, which has seen an 14% increase in like-for-like sales to £131m, while new home reservations are up 1% at an average of 39 properties per week.

The average house price achieved is 13% higher at £197,000.

Morgan also expressed confidence in the long-term prospects for the housing market, despite what he described as “seemingly endless negative economic news”.

“Underlying demand for new homes remains strong and is anticipated to increase,” he said.

“Several recent independent surveys have shown that it is now cheaper to buy than to rent in most areas of the country; yet potential first time buyers are not able to buy due to the scarcity and prohibitive cost of high loan-to-value mortgages.  

“Solving the mortgage issue by the introduction of Mortgage Indemnity Guarantees, or some similar product, would stimulate the housing market and make a significant contribution to the economy.”

Click here to sign up to receive our new South West business news...
Close