Planning Permissions for New Homes Fall to Lowest Level Since 2012
- Bluestone Planning
- Sep 12
- 3 min read
The latest figures from the Home Builders Federation (HBF) paint a stark picture for England’s housing supply. Planning permissions for new homes have dropped 17% year-on-year to just 44,520 in the second quarter of 2025 - the lowest quarterly figure since 2012. This decline marks the tenth consecutive quarter of falling approvals and underlines the scale of the challenge facing both government and industry in delivering the homes the country urgently needs.
A Housing Pipeline Under Strain
Between April and June, just 1,410 sites gained planning permission. Over the past 12 months, only 8,200 sites have been approved - the lowest rolling annual total since records began nearly two decades ago.
Since the beginning of Labour's term, the number of homes permissioned now stands at 221,900, making it the weakest 12-month total in over a decade. For context, to deliver on the Government’s commitment to 1.5 million homes by 2029, approvals would need to average around 370,000 per year. Current figures are at just 60% of that requirement.
This is a clear signal that the housing pipeline is narrowing and without intervention the shortfall will only deepen.
What is Driving the Decline?
Several interlinked factors are creating significant barriers to new housing delivery:
Rising costs and taxes on new homes are squeezing viability, particularly for smaller builders.
Delays in the planning system continue to frustrate developers and stall investment.
Weak demand and limited mortgage availability are restricting the market.
The absence of government support for first-time buyers, for the first time in 60 years, is further reducing demand for new-build homes.
Neil Jefferson, Chief Executive of the HBF, highlighted that “loading more and more taxes on home building is working against the overarching objectives of the government to build more homes”.
Implications for Policy and Practice
While the industry has welcomed early planning reforms introduced post-election, the data makes clear that tweaks alone will not be enough. A holistic approach is needed, one that tackles both the supply-side barriers to development and the demand-side challenges facing potential buyers.
For policymakers, this means:
Streamlining the planning process to reduce delays and uncertainty.
Reviewing the cumulative impact of regulation and taxation on viability.
Considering targeted support for first-time buyers to stimulate effective demand.
For developers and land promoters, the message is equally clear: proactive planning strategies and early engagement with local authorities will be essential in navigating an increasingly constrained environment.
Conclusion
The latest Housing Pipeline Report underscores the fragility of housing delivery in England. With approvals at their lowest in over a decade and housing supply stagnating around 200,000 homes per year, decisive action is urgently required if national housing targets are to be met.
--
Whether you are bringing forward a small residential scheme or promoting a larger housing site, understanding how national policy shifts, local authority capacity and viability pressures intersect is critical to avoiding delays and maximising your chances of success.
As Government considers further reforms to the planning system, developers who take a proactive approach, seeking coordinated professional advice at the pre-application stage, will be best placed to progress their projects despite mounting challenges.
If you are exploring a new development and want to understand how the latest changes could affect your proposals, we would be happy to discuss how our expertise can support you.
📞 +44 1235 766825
Comments