DESPITE fears that the housing market is overheating, new homes prices are continuing to soar with many developers selling properties up to nine months ahead of their build programme.

However, this buoyant market disguises the fact that housebuilders are struggling to produce their homes, according to land and new homes specialists RPC Land and New Homes.

"Developers are having huge problems caused by the totally inadequate planning system and a desperate shortage of skilled labour," says RPC managing director Peter Randall.

"In many cases planning applications on land are now taking some 12 to 18 months to negotiate despite the government's rhetoric to encourage planning authorities to process applications more quickly. Meanwhile, we all continue to be frustrated by the inevitable delays in planning, creating a shortage of planning consents which in turn leads to a shortage of new homes and with current demand prices will inevitably continue to rise.

"In addition, labour shortages are further frustrating the market, pushing developers’ costs up and delaying new homes coming to the market."

He warned: "The situation is likely to get much worse before it gets better. The recently-published Green Paper aimed at modernising the antiquated planning system will not bring any real benefits for some years."

RPC - one of the largest firms of its kind in Kent and Sussex with centres in Tonbridge, Dartford, Maidstone and Haywards Heath - report that residential land prices are continuing to rise.

"The government has brought in a policy for high-density schemes and on land in prime West Kent areas we are now achieving values in the region of £2 million per acre," said Peter. In North and mid-Kent land, is selling at up to £1.25 million per acre, Ashford in the region of £700,000 and East Kent up to £500,000.

RPC specialises in residential building land and new homes throughout Kent, Sussex and South East London and offers a free appraisal service. Peter Randall can be contacted on 01732 363633.