Whilst the impact of Covid-19 on the housing market has yet to fully play out, an appeal (ref: APP/X0360/W/19/3238048) by Wellbeck Strategic Land saw evidence and speculation on what it might mean for housing delivery in Wokingham Borough. The Inspector opined (section in bold our emphasis):
“108. Drawing the above points together, I conclude that in my estimation 811 dwellings should be removed from the trajectory. This means that the Council can demonstrate a 5.43 year supply of deliverable sites.
109. The Covid-19 pandemic is likely to have implications for the housebuilding industry as with other sectors of the economy. The evidence indicates that a number of developers are temporarily closing their construction sites to protect employee and customer welfare. For those remaining open, the lockdown will impact on the availability of support services. Customer confidence is also likely to be reduced with a consequent effect on the buying and selling of property.
110. The Appellant has concluded that the effects would be felt for a 3 to 6 month period, which does not seem unreasonable. On that basis the conclusion is that a further 168 dwellings should be removed from the trajectory to take these factors into account. Whilst it is contended that this is an optimistic assessment, it is equally possible that a bounce back will occur once the crisis ends. Indeed, it is reasonable to surmise that housebuilders and their suppliers will be keen to rectify losses if it is possible to do so.
111. At this stage the economic effects of Covid-19 cannot be known. However, even if all of the impacts suggested by the Appellant are accepted, the Council would still be able to demonstrate about 5.2 years supply of deliverable sites.”
Brett Spiller, founding Director at Chapman Lily Planning commented: ‘Whilst the appeal was ultimately dismissed, the Inspectors acceptance of the potential impact of Covid-19 and the weight attributed to alternate projections is likely to resonate across the country. It can only compound the woes of those authorities which are struggling to maintain delivery rates and will only serve to strengthen the case for a 20% buffer where local planning authorities cannot demonstrate a 5-year housing land supply. I have absolutely no doubt that the development sector will have a critical role to play in getting the economy back on its feet post lock-down’. For further information, please contact us.