Permissions up but completions down?


From ‘It’s Our Cornwall/Cornwall developers paradise’

In 2012 there were just over 15,000 permissions for houses to be built in Cornwall but not yet started. Let’s put that into perspective. It’s equivalent to 1.7 more Truros. Two years later and the number of houses with permission but not yet started had climbed to over 20,000. Which equates to another 2.2 Truros.

Yet the strange thing is that, despite all the permissions being doled out right, left and centre, the number of houses actually being built is falling. Last year saw the lowest recorded total since the 1990s. Developers are building at a rate of 40,800 (or 4.6 Truros) every 20 years rather than the 47,500 (or 5.3 Truros) Cornwall Council assures us are ‘needed’.

https://cornwalldevelopersparadise.wordpress.com/2015/03/03/good-news-or-bad-housing-completions-in-cornwall-slide-as-planning-permissions-granted-soar/

Comment
What are we to make of this situation? Lets offer some ideas.

1) Developers are as suggested building up reserves prior to the General election fearing uncertainty thereafter;

2) Developers have seen which sites are either allocated or likely to be allocated and have rushed to buy the land and in some cases get permission;

3) Developers have seen that demand is lower than expected and are holding off from actually building houses;

4) Developers are using land with planning permission to make money by selling to other developers!

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