Planning Rules need to be relaxed to avoid another bubble
According to the Lloyds Bank chief the government needs to reform the planning system and relax the planning rules if we are to avoid another property bubble. His comments come as the demand for properties is currently outstripping the supply of properties available to buy particularly in London and the south-east of England. Many new property developments that are being built can take up to two years just to get planning permission. This can be doubled for very large schemes and is the main obstacle in getting new houses out of the ground. The government needs to do something to speed up the planning process and make it much easier to get planning permission.
Unless more new homes are built there will inevitably be unsustainable house price increases that will create more problem for first time buyers looking to get onto the housing ladder. The government has stoked up the market with the Help To Buy Scheme but the planning rules remain the same and we are still stuck in the dark ages with the planning system according to many market commentators.