The Home Builders Federation have released their new FOI research showing that local authorities are getting desperate for new roads
The HBF’s research has shown that new road demand has increased by 1,000% in the last seven years.
This has come in the increased number of highway bonds, the guarantee that developers make to councils to ensure that roads are built to required standards.
The average time to approve road designs has massively increased
The HBF report, titled Slow Lane to Adoption, examines various aspects of road construction in local authorities, showing a lack of consistency between councils, and little in the way of guidance from highways authorities in terms of adoptable standards.
The report found:
- The average time to approve road designs has increased from two weeks to two years
- For the financial year 2022-23, the average cost of a bond ranged anywhere from £3,619 to £3.6m. Compared to the first HBF report in 2017, where the average was £515 to £321,421, this is a massive increase
- The cost per bond has risen by over 700%, while the highest value has risen over 1,000%
- The variance of bond value percentage can range from 3% in one local authority to 20% in another
- Section 278 agreements (alterations made to existing highways) can see the time taken from technical submission to technical approval range from 2-103 weeks
- Section 38 agreements (construction of new highways) the time taken from technical submission to technical approval can see the same time, and then to formal adoption can see anywhere from 4-286 weeks
SME homebuilders are impacted by the lack of road adoption
The HBF research into new road demand has unearthed the impact on Small and Medium Enterprise homebuilder firms, citing the conflicting approaches used by highways authorities, the lack of standard timescales, and increasing costs making it extremely difficult for these firms to deliver housing.
Last year, the National Audit Office published a report on the state of England’s roads, showing that the problems with potholes has worsened, and the backlog is becoming increasingly unmanageable with only 48% of roads in the country in a ‘good’ condition, and 35% and 17% as ‘adequate’ and ‘poor’.
Neil Jefferson, chief executive officer of the Home Builders Federation, said: “For many years, our research has highlighted the problems that exist in getting highways adopted. In most cases, roads are being built to common adoptable standards and yet they remain unadopted by local authorities.
“We support the CMA’s recommendations to introduce common adoptable standards and mandatory adoption by public authorities. Without government intervention to establish a consistent national approach and mandate adoption, home builders and homeowners will continue to face the consequences, resulting in avoidable costs, delays and risks to business.”
