Planning permission for new homes plummets 23%

Labour has attacked the housing minister Grant Shapps after new figures revealed a sharp drop in planning permissions for new homes.

Planning was granted for only 25,171 homes from April to June, a 24% fall on the first quarter and 23% lower than Q2 2010.

Labour’s Shadow Housing Minister, Alison Seabeck MP said: “These are embarrassing figures for a housing minister who promised to ’beat the last government hands down’ when it came to delivering more homes but has instead presided over a decline in new homes being built, a decline in new planning permissions being granted and a rise in both homelessness and rough sleeping.

“The Tory-led government’s decision to cut the budget for new affordable homes by 60% and to waste money on an ineffective ’New Homes Bonus’ is holding back families’ aspirations across the country from a home that they can call their own.”

The HBF which released the figures said that around 60,000 homes per quarter were required to meet the housing shortfall.

Stewart Baseley, executive chairman at the HBF, said: “These new figures paint a bleak picture. We already have an acute housing crisis that is affecting the quality of life of families, young and old, across the country and the economy.

“Government must stand firm and deliver a planning system that supports home building and economic growth. If it doesn’t, the social and economic implications will be felt for generations.”

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