Martyn Blackman, chief investment officer at Bromford, said: “Cost inflation appears to be the biggest concern amongst housebuilders with 88% of respondents to an HBF survey recently citing this as the concern.
Following this is land and planning, both of which are providing their challenges in getting new sites started/acquired. The land market is incredibly hot right now with land prices rising higher/faster than at any point in recent years, additional competition from new market entrants and PLC with target to achieve, means these parties are looking at land they wouldn’t usually (ie smaller parcels).
The resource in the LPA to deliver the high volumes of planning applications is a challenge, with time to achieve planning getting ever longer. Active sites are well set up now for the post Covid world and seem able to work in a covid safe yet efficient way, maintaining supplier relationships and providing long term certainty of onward opportunity will be key to seeing through delivery across the coming year.