In 2022, the industry witnessed a dip in the number of planning applications receiving permission, down 25% on 2021. But this was not due to a lower success rate, but rather a backlog in the decision-making process. In fact, of unapproved applications, more than 90% are still awaiting a decision.
Should this backlog be addressed, we could see approvals surge this year. Outside of residential property, this could have a significant impact on the sectors where backlogs are the largest – industrial (where 49% of last year’s applications are still awaiting decision), leisure (45%) and offices (42%).
With a raft of potential newly approved applications, we could see a range of new developments when the backlog eases.
Real Estate Credit Investments Limited (LON:RECI) is a closed-ended investment company which originates and invests in real estate debt secured by commercial or residential properties in Western Europe, focusing primarily on the United Kingdom, France and Germany.