While the cost of materials has edged downwards recently, planning delays are expected to have an impact on housebuilding in the next quarter.

More than four fifths (85%) of respondents in the latest Knight Frank Residential Development Land Index for Q2 said that planning delays could be the largest hurdle when it comes to delivering new-builds during the second quarter, with 77% saying this will also be the biggest stumbling block for Q3.

The report reveals that uncertainty over the “future direction of planning” has caused some development projects to stall, while in Q1 this year, the number of decisions granted fell by 16% compared with Q1 2022.

Half of housebuilders surveyed said that they allowed more than one year to secure reserved matters approval on an allocated site, which is the next stage after outline permission has been granted. The ideal timeframe for approval should be between eight weeks to three months, depending on the size of the development.

The survey found that almost a fifth (18%) of builders even allowed up to two years for this stage of the planning process, and only 13% said they begin building within up to six months.