With too few houses being built changes to planning laws will be a key focus after the election but a complete overhaul could mean new homes will remain in short supply for a while yet.
A Tory win could lift house prices Clyde Lewis, analyst at Citigroup, believes the Conservatives will change the planning system within six months of forming a new government.
‘The new Tory scheme would inevitably involve a host of changes and Local Authorities would likely go into analysis mode and start deferring planning decisions (even straightforward ones) until they had fully assessed the new rules,’ he said.
That won’t be a problem for house builders with plenty of land with planning permission but with so many facing aplot shortfall that could mean fewer houses being completed.
'The silver lining to this is that it could be helpful for prices,' Lewis said.
Ultimately, the Conservative partyis keen to make planning decisions more local and provide suitable incentives to the local authorities to grant development.
Falling supply isplaying anincreasingly importantpartin the housing market as fewer new homes have been built during thedownturnyears than at any point since the Second World War.
TheHome Builders Federationhas warnedthe UK’s housing shortage is fast approaching one million homes and Lewis believessupply will remain short of underlying demand over the next couple of years.
