AnnualReportFinancialStatments2023

Annual Report &

Annual Report & Financial Statements 2023 Market overview Cont. Strategic Report Market overview Continued 3. Planning delays risk impacting new homes 03 Planning delays risk impacting new homes 04 New environmental regulations on land It has been widely known that planning applications have declined since the onset of Covid-19. However, it is not just the staff shortages seen at local councils but the lack of clarity of the political direction regarding housing strategy that has seen decisions put on hold, further reducing planning decisions. A major backlog of planning applications to be decided has built up since the onset of Covid-19. Major residential planning applications granted in the period post the onset of Covid-19 have fallen 27% on the average for the 5-years prior¹. This shows the significant delays being experienced and therefore, as highlighted earlier, the shortfall in the number of new homes being built. 57% of people support new homes being built in their local area, whilst only 23% oppose. Support for building new homes is greatest amongst social and private renters (70%). However, 50% of owner occupiers are also supportive of new house building. Support is also strong amongst all age groups, with support ranging from 53% (66 and over) to 64% (18-25 year olds)². The Keepmoat Model Planning applications received and decided in England 2020–2023 140,000 130,000 120,000 110,000 100,000 90,000 80,000 70,000 60,000 2020 Q1 2020 Q2 2020 Q3 (1) ONS, Planning applications decided and granted, England (2) British Social Attitudes Survey, October 2019 – Public attitudes to house building 2020 Q4 2021 Q1 2021 Q2 2021 Q3 Applications received Applications decided 2021 Q4 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2023 Q1 2023 Q2 2023 Q3 The Environment Act 2021 has increased the protections for nature and the environment, most notably with a focus on biodiversity net gain. Surprisingly, this can be more challenging to implement on brownfield sites, which may have been left untouched for a number of years and therefore have become richer in biodiversity than heavily grazed or pesticide-treated agricultural land. This adds cost to brownfield development which, paradoxically, is viewed favourably both by 78% of the general public¹ and by UK Government strategies on levelling up. Uncertainty continues over attempts to relax nutrient neutrality rules for housebuilders. The Home Builders Federation estimates that around 100,000 homes are being held up by this policy. The Keepmoat Model Keepmoat has a robust land acquisition strategy and has developed the necessary expertise to assess and develop solutions to ensure we meet our sustainable development obligations. This coupled with our clear sustainability strategy means we are well positioned to address the existing and emerging environmental regulations and to deliver on our wider sustainability goals. (1) You Gov poll, Should planning permission be given to build on brownfield land? Keepmoat has a strong pipeline of land across all of our regions and has a proven track record of successful planning applications. Through our Partnership model we work closely with landowners and local authorities to understand the requirements of all stakeholders in our developments, including local communities. This ensures we align our plans with those of our partners to deliver homes and spaces that enhance the areas in which we build. Chart: ONS, Planning applications decided and granted, England 30 KEEPMOAT.COM 31