Key facts
- The UK's planning system is hindering developers' ambition and slowing housing delivery, according to Neal Moy, managing director at Paragon Development Finance.
- Moy stated that the planning system makes simple things complicated, resulting in slow processes and costly delays.
- He noted that SME housebuilders consistently identify regulatory burden as a significant challenge.
- Despite current market difficulties, Moy sees reasons for optimism due to planned planning reforms.
- Increased activity is also being observed in the later living and care home sectors.
Neal Moy, managing director at Paragon Development Finance, has voiced concerns that the UK's planning system is stifling ambition among property developers, particularly small and medium-sized enterprises (SMEs). In an interview, Moy described the system as overly complex, leading to lengthy and costly delays in bringing housing projects from conception to completion.
Moy highlighted that SME housebuilders consistently report the growing regulatory burden as a major obstacle. While acknowledging the necessity of sensible regulation, he questioned whether current measures have become excessive, given the time it takes for developments to break ground. He expressed optimism for the coming year, anticipating that planned planning reforms will alleviate some pressure and boost housing delivery, although he noted that the benefits are taking time to filter through.
Beyond residential development, Moy also pointed to increased activity in other sectors, such as later living and care homes, driven by an aging population. He stressed the importance of agility for lenders to adapt to evolving market demands. Moy shared insights into his career, which spans over 40 years in development lending, including roles at Barclays, Westpac, Lloyds TSB, BHF Bank/Deutsche Postbank, RBS, and Ratesetter. He recalled leading a team at RBS before the Global Financial Crisis, managing challenging deals like the refurbishment of the Grosvenor House Hotel.