Developers across a Devon district have failed to start building more than 1,500 new homes despite having obtained planning approval for these properties.
It presents a considerable challenge for Mid Devon District Council, along with similar authorities, as sites that remain undeveloped cannot contribute to crucial statistics tied to mandatory government targets.
Councillor Steve Keable (Liberal Democrat, Taw Vale), who oversees planning and economic regeneration, revealed that 2,056 homes held planning consent in March of the previous year, yet by May this year, three-quarters - amounting to 1,539 properties - had not been started.
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"This shows that we as councils can push things through, but people are just not building them," he said.
"The government wants 1.5 million new homes built as part of its growth agenda, but it already has applications for that many in place [nationwide] but which haven't been started."
Properties with planning approval do not qualify towards a council's so-called five-year housing land supply unless construction has begun. The government characterises this as a provision of specific deliverable sites adequate to supply five years' worth of housing, a calculation derived from the annual housing target each council must achieve.
In the absence of evidence demonstrating a five-year supply, councils find themselves in a compromised position when determining potentially contentious planning applications. A lack of deliverable sites, which prevents a council from claiming it has a five-year supply, triggers a mechanism known as the 'tilted balance'.
Essentially, this means that even if a proposed development contradicts some of the council's planning policies, these concerns can be overridden by the perceived lack of forthcoming new homes. The weight of the supposed lack of deliverable sites outweighs the potential harm of a new development on the so-called 'tilted balance' scales.
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Mid Devon experienced this with the contentious scheme for up to 100 homes at Tidcombe Hall, where the council's rejection of the plan was overturned at a planning appeal. The lack of a five-year housing supply was cited in the planning inspector's decision.
"Developers are land-banking permissions they've been given and aren't doing anything with the sites," said Cllr Keable. "If developers don't start them, then they don't count towards our five-year supply."
This issue has also been discussed at other Devon councils. Last year, Councillor Mike Howe (Independent), who represents Clyst Valley on East Devon District Council and is vice-chair of the authority's strategic planning committee, suggested that developers should be compelled to complete projects within a certain timeframe.
He added that if this deadline was missed, firms should face a financial penalty or forfeit their planning permission.
The council's cabinet considered a proposal, with leader Paul Arnott (Liberal Democrat, Coly Valley) describing it as an "excellent idea" and committing to advocate for it with the government.
Cllr Keable highlighted Mid Devon's proactive stance on planning applications, boasting that the council is "top of the league for turning around permissions in the whole of the South West".
He argued that the government's focus on new applications is misguided and that more effort should be directed towards ensuring developers build on sites they already have permission for.
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"Developers can just wait for more favourable conditions to emerge before starting work, so we are making representations to government about this, but with the majority they have, they are unserving in terms of their growth agenda," Cllr Keable remarked.
Cllr Keable also expressed his exasperation over the need to "almost apply again" for funding to upgrade J28 on the M5, a project critical for the development of over 5,000 homes at the nearby Culm Garden Village.
"We've been waiting for a year for the government to make a decision on the J28 works, but if a decision had been made a year ago on the evidence they already had, we would be in a very different position," he lamented.
"The government machine has been slow to allocate investment, and if it doesn't come through for J28 then Mid Devon District Council will be in a very difficult position as it won't be able to start the new homes at Culm Garden Village.
"We're very much relying on those for our five-year land supply figures."