Building projects fall to record low

Developers are hit by economic uncertainty

SCOTLAND is in the grip of a development slowdown, with the number of new projects plunging to a record low.

Private developers have hit the brakes on major works, while cashstrapped homeowners are not pushing ahead with extensions and other home improvements.

Figures published by the Scottish Government yesterday show that the number of planning applications coming before councils slumped by 6.6 per cent last year, to 27,232.

It comes amid mounting concern that developers are unwilling to press ahead with plans because of the huge uncertainty facing Scotland’s economy.

The figures also show that councils are taking longer to decide on major planning applications than ever before – meaning many crucial developments can take years to come to fruition.

SNP ministers have been urged to boost the economy and give firms the confidence to invest – and to speed up the process. Mandy Catterall, government relations manager at the Scottish Property Federation, said: ‘The increase in decision-making times for major applications is a particular concern and highlights that the planning system in its current guise is not working well.

‘We hope that the current planning reform process will culminate in a more efficient system and assure investors that Scotland is open for business.’

Figures in the Government’s ‘planning performance’ report show that the number of council decisions on applications last year was 6.6 per cent lower than a year earlier.

The number of decisions on ‘major’ developments – defined as 50 or more homes, larger retail developments or certain waste, water, transport and energy-related developments – fell from 268 in 2015/16 to 246 last year, while ‘local’ developments such as house extensions, loft conversions and small housing schemes decreased from 28,764 in 2012/13 to 26,986 last year.

The overall number of planning applications decided on by councils was the lowest since the Government began publishing the figures in 2012.

In the report, the Government notes that there have been fewer local applications for ‘housing, electricity generation, householder, business and industry and other developments’, while fewer major applications were brought forward for ‘all categories of development apart from housing and business and industry’.

It also showed that it took councils an average of 37 weeks to reach a decision on major applications – six weeks slower than 2015/16 and the slowest response on record. Fourteen decisions made last year took more than two years.

Scottish Labour deputy leader Alex Rowley said: ‘This slowdown should be a wake-up call for the SNP.’

The Government said: ‘Decision times... are improving, with almost 27,000 applications being decided within 9.2 weeks.’