Numbers slide again as Savills forecasts 1.5 million homes target will be missed
The number of homes in England given planning permission has fallen to a “disastrous” 13-year low, according to a report by the Home Builders Federation (HBF).
The HBF’s latest Housing Pipeline Report, which is based on data from information provider Glenigan, reveals approvals are 55% down on the last quarter and 32% lower than for the same period last year.
During the first quarter of 2025 there were 39,170 new homes given planning approval in England – the lowest number of quarterly approvals since 2012 and the third lowest since the data set was started in 2006.
The number of homes approved in the year to Q1 2025 was 225,067 – a 7% drop on the previous 12 month period and the lowest 12-monthly outturn recorded since 2013.
The number of projects, or sites approved in Q1 2025 was 2,010, an 18% drop on the previous quarter, the worst quarter since reporting began almost 20 years ago.
The rolling annual number of projects approved in the year to Q1 2025 was 9,275, itself a new record low. The annual rolling number has fallen for 12 consecutive quarters.
The HBF estimates suggest around 200,000 new homes are being delivered in England a year, already 100,000 behind the run rate needed to hit the government’s 1.5m target.
Neil Jefferson, chief executive of HBF, said: “The latest planning figures are disastrous for an industry and a government looking to increase housing supply over the coming years. With current supply flatlining and permissions for homes to be built over the next few years plummeting, unless urgent interventions are made, there seems little chance of us building the homes we know are desperately needed.
“Planning permissions and house building levels will not increase unless ministers work with industry and tackle the issues preventing companies from pressing the accelerator and investing in the sites, skills and supply chains needed build the homes the country needs.”
Allan Wilen, economics director at Glenigan, said: “The drop in detailed planning approvals has been widespread, but especially marked for larger projects of 125 homes or more.
“Whilst Glenigan has seen an increase in planning applications in recent months, the current decline appears to reflect earlier declines in planning applications during 2023 and the first half of last year. This underlines the long lead time to secure residential planning consent and the need to streamline the planning system.”
Meanwhile, Savills today forecast there will be roughly 840,000 new home completions in England in the five years to 2028/29, 42% short of the government’s 1.5 million homes target.
The consultancy said falling planning consents in the last three years have reduced the pipeline of new homes which can be delivered in the near term, while rthe government’s planning reforms will take time to have an impact.
The figures come days before the government’s multi-year spending review, in which housing providers are hoping for a substantial affordable homes programme.
However, the Savills paper said: “Even if policy removes this demand barrier through measures such as a buyer support scheme or a large increase in grant funding for affordable housing, delivery will be constrained by the speed at which the housebuilding sector can expand its workforce and supply chains.
“We think the sector could only expand to reach 1.2 million completions over five years at absolute capacity, based on past precedents for expansion.”
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