With increasing population, the demand for residential units in the UK is also on upswing.

In 2004, Kate Barker, member of the Bank of England?s Monetary Policy Committee, accomplishes a study, wherein she found that after World War II, only 175,000 houses had been built in 2001. In 2002, only 37 per cent of new households in UK could afford to buy a house, compared to 46 per cent in the late 1980s. To reduce the rising prices of residential units to 1.8 per cent, it was estimated that an additional 70,000 private sector houses would be required per year, thus leading to an increase in the demand for land. At the same time, the UK Government is trying to ease pressure on the county councils by developing farmland near slough and other land around the big cities like London.

Another fact to be worth-noticing is that over the last 10 years, land values have gone up 370 per cent, and over five years by 226 per cent.

Kate Barker, member of Bank of England Monetary Policy Committee, while submitting her famous Barker report stated that the planning system in the UK needs to be revamped to accommodate recent changes in the economy.

She added that there are certain trepidation felt while taking decisions on land use for 15 to 20 years. Not only this, it was also felt that the rapid change in the economic and social state of affairs does not hold truth. However, she noted that the proportion of major applications has increased over the last five years.

According to the Barker report, many significant investments in the UK have come to stand still, on account of planning issues, which has actually made the planning concern one of the top six concerns of companies looking to invest in the UK.

Barker stated that her final report will draw attention towards the processes through which land use can be made more efficient along with providing value for money.

Posted by Moren Adenubi on December 13, 2008 at 12:00 AM

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