The number of new homes granted planning permission in England has dropped by 17% on the same quarter last year to 44,520. The figure is the lowest quarterly figure since 2012 and is down by a third (33%) on its peak.
Meanwhile, the rolling annual number of homes permissioned in England stood at 221,900 in the year to June 2025, meaning that investment in new housing sites has slumped to the lowest 12-monthly rate in 12 years.
Tenth successive quarter of decline
The figures, from the Home Builders Federation’s (HBF) latest Housing Pipeline report, are based on data from Glenigan. They show that only 1,410 sites were approved between April and June, marking the tenth successive quarter of decline.
In total, 8,200 sites were permissioned in the 12 months to June, the lowest rolling outturn recorded since the data series began two decades ago. It’s also fewer than half the number of sites that were granted permission during 2019.
The HBF says that the new figures show the huge challenge the Government faces to achieve its housing targets, with a range of indicators all showing that housing supply levels are flatlining at best at around 200,000 homes a year. This is short of the number needed to get to the much vaunted 1.5 million homes target for this parliament.
370,000 permissions required a year
To meet its pledge of delivering 1.5 million homes by 2029, an estimated 370,000 permissions per year are required, on average. However, current approval rates are at just 60% of that target.
Neil Jefferson, chief executive at the Home Builders Federation, says rising regulatory costs and taxes are being compounded by delays in processing planning applications as well as poor access to finance.
“A lack of affordable mortgage lending is suppressing demand for new homes, particularly amongst young people. Without any government support for first-time buyers for the first time in decades, the potential market for new homes is being limited.”
“This research highlights the fragility of the housing pipeline and a continued downward trajectory that shows little sign of changing soon. Without meaningful action to tackle constraints on housing delivery, the early confidence that industry placed in the Government will undoubtedly begin to wane.”
The figures are supported by the September edition of the Construction Index from Glenigan, which shows residential construction starts fell 18% in August compared to the previous three months, finishing 16% below 2024 levels. Private housing fell 16% during the Index period and 16% compared to the previous year.
Glenigan economist Drilon Baca says: “Many contractors and subcontractors will be deeply frustrated by the apparent ‘false start’ performance-wise, especially within the residential verticals.”
