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Housing approvals plunge by a third

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The number of new homes landing planning permission plummeted 32 per cent in the second quarter of this year

Just 28,300 residential units were approved between April and June this year – representing a 32 per cent decrease on the previous quarter.

The data from industry monitor Glenigan and the Home Builders Federation adds further weight to speculation the National Planning Policy Framework, introduced in March, may have slowed development (see AJ 14.06.2012 Greg Clark defends NPPF in face of new figures showing a drop in approvals).

Last week, Prime Minister David Cameron announced a range of measures to boost housing delivery including a £300 million affordable housing fund and a temporary doubling of permitted development rights for house extensions. The proposed ‘deregulation’ came as planning minister Greg Clark, who oversaw the government’s controversial National Planning Policy Framework (NPPF), was replaced by Nicholas Boles.

According to the Glenigan and HBF data, social housing was the worse impacted, seeing a 41 per cent blow in the second quarter.

Fresh data from the Office for National Statistics meanwhile reported a 0.2 per cent increase in construction orders in the same period.

Private housing was up 9.2 per cent and social housing increased by 7.2 per cent in the period. Infrastructure was however down 20.4 per cent while private industrial construction also fell 13.3 per cent.

Overall, construction orders were 11.1 per cent higher than this time last year.

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