Sort out planning delays so we can build homes faster

The recent news that Forfar-based housebuilder Guild Homes is finishing their “last house under construction” sends a worrying sign for the sector. The family-owned firm have built three-quarters of new homes in and around their hometown since 2012 but have experienced consent and planning delays over the last few years meaning their next project for 216 new properties at the Turfbeg West development hasn’t received consent to go ahead, putting at risk the 30 jobs the business supports.

At the heart of this issue is a failure to improve the pace that councils agree planning consent coupled with a lack of planning policy on the part of government. The number of all-sector newbuild starts in Scotland fell just under 9 per cent in the latest twelve-month period. The latest data revealed that financial year all-sector newbuild starts between 2023/24 and 2024/25 fell by 1,478 (-8.9 per cent) from 16,582 to 15,104 – the lowest 12-month figure since 2012/13. These figures are 4,327 and 5,838 lower respectively than the pandemic years of 2020/21 and 2021/22.

The drop in private-sector newbuilds was 1,123 (-8.6 per cent) lower, falling from 13,076 to 11,953. This is the lowest annual figure since 2013/14, when 11,913 homes were started.

​David J Alexander is CEO of DJ Alexander Scotland Ltd (Picture: Laurence Winram)

The difficult position Guild Homes face is illustrative of the pressures driving the housing crisis in Scotland, where planning delays and a lack of investment have undermined attempts to build homes faster. Housebuilders want the government to ease regulations to make more land available and do more to help councils deal with an acute shortage of planners.

Given that the housing emergency was declared in Scotland 18 months ago there was an assumption that there would be an immediate and effective response to deal with the situation. That hasn’t materialised.

Despite the immediate need to address the housing emergency the Scottish Government has said it is currently monitoring the progress of planning authorities towards publishing local development plans by May 2028.

But this isn’t a situation that has happened overnight it has been developing over decades. The number of small and medium-sized builders in Scotland has fallen by 70 per cent since 2008. These are the firms that know their communities, they know the available sites, and they are meeting the needs of people wanting a new home in specific areas.

​Once independent builders disappear they don’t come back, says David Alexander (Picture: stock.adobe.com)

What housebuilders and homeowners need immediately is additional resources for councils to clear planning backlogs coupled with a more flexible and dynamic approach to approval. It should only take a matter of months to approve planning yet currently can takes years.

If the housing emergency is to be addressed any time soon then action needs to be taken now. The problem is so acute that only by nearly doubling the current annual level would we get back to the new private house building rates of 2006-07.

There is no easy solution but there needs to be a start. Once independent builders disappear they don’t come back. Relying on enormous building conglomerates to fulfil all housing needs carries risks and the market would benefit from as broad an array of housebuilding providers if the housing emergency is to be addressed any time soon. Work on this needs to start now and Forfar is as good a place as any to begin.

David J Alexander is CEO of DJ Alexander Scotland Ltd