Planning system still holding back growth, says Morgan
REDROW chairman Steve Morgan believes the planning system “remains a significant constraint” to growth even though the group has nearly 17,000 plots with consent to build.
In an AGM statement Mr Morgan conceded the planning system has improved “at a strategic level” but he said, “obtaining detailed consents and clearing countless unnecessary conditions remains a significant constraint on new outlet openings and growth”.
He added: “In addition, political posturing ahead of next year’s General Election is already having a detrimental impact on the time taken to grant planning permissions in many parts of the country.”
In the first quarter Redrow added 1,500 plots across 14 sites to its land bank. The total with planning permission stands at 16,914 plots.
Ewloe-based Redrow enjoyed a significant lift from the Government’s Help to Buy scheme, which helps buyers to complete with a 5% deposit, but said sales have slipped back to “more normal levels of activity”.
However, demand is high, particularly in London, where developments are being sold out on release. The average selling price is 4% ahead of the same period last year at £284,000. Across the UK order are up 10% year on year at £465m. Net debt has reduced from £173m in June to £120m.
