HBF Pipeline report reveals barriers to housebuilding
The Home Builders Federation (HBF) has published its Housing Pipeline Report for the final quarter of 2024, revealing that last year saw planning approvals hit a decade low.
The report, with data from Glenigan, shows that 242,610 homes received planning permission in 2024 – the lowest for any calendar year since 2014.
Last year’s approvals were also -2% down on 2023 and a -26% fall from the peak of 2019. The HBF calculates that this equates to a loss of over 85,000 annual approvals, and to meet the Government’s target of 370,000 new homes a year, planning approvals must rise by 53%.
The barriers to housebuilding were set out to the Housing, Communities and Local Government Select Committee this week, during a one-off session in which several witnesses highlighted industry capacity and planning as key issues in meeting housing targets.
Tim Balcon, Chief Executive of the Construction Industry Training Board, warned that 161,000 people would need to enter the construction workforce to meet targets; relevant information, given that the Chartered Institute of Building published an Attitudes Towards Construction Careers report this week which revealed that 47% of young people said information about the construction industry was not included in the careers advice they received while in education.
A more detailed review of the Select Committee can be found on Building.
Meanwhile, the latest S&P Global UK Construction Purchasing Managers’ Index has found that the construction industry suffered its fastest downturn in output since May 2020 last month.
The index registered a value of 44.6, declining from 48.1 in January. Residential building decreased for the fifth month in a row, with a score of 39.3.
Survey respondents cited weak demand, elevated borrowing costs and a lack of new work as the key drivers.
Average UK house price holds steady in February
The Halifax published its house price index for February this week, reporting a slight fall in property values in the month of -0.1%.
The average property price rose by 2.9% over the year to £298,602.
Northern Ireland continues to have the strongest annual property price growth in the UK, at 5.9%. Scotland saw growth increase to 3.8%, with Wales at 2.8%.
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Brickmaker Ibstock has reported a fall of -30% in pre-tax profit for the year ending 31 December 2024 to £20.7m, alongside a -10% drop in revenue to £366m.
The business reported an improvement in sales in the second half of the year and noted “solid” trading in the early weeks of 2025.
The firm also said it expected “an improvement in market volumes in 2025, with momentum building through the year.”
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