The latest figures on housing permissions in England reveal a worrying trend for the property market. The number of new homes granted planning consent fell to just 44,520 in the most recent quarter. This marks a drop of 17% compared with the same period last year and represents the lowest quarterly total seen since 2012.
This downturn is not an isolated dip but part of a consistent pattern. In fact, permissions are now a third lower than their peak levels, highlighting how far approvals have slipped in recent years. For those hoping to see the Government’s housing ambitions fulfilled, the data paints a concerning picture.
When the figures are examined on an annual basis, the decline becomes even more striking. In the 12 months leading up to June 2025, only 221,900 homes received planning permission. This is the weakest rolling annual figure in 12 years, demonstrating that investment in new housing sites has slowed dramatically.
The situation has been worsening for some time. The period between April and June marked the tenth consecutive quarter in which planning approvals have fallen. During those three months, only 1,410 sites were approved, underlining the lack of momentum in the housing pipeline.
Taking a broader view, just 8,200 sites were granted permission in the year to June. This is the lowest total recorded since the data series began more than two decades ago and less than half the number of sites approved as recently as 2019.
The Home Builders Federation (HBF), which compiled the data using research from Glenigan, has warned that these figures reveal the scale of the challenge facing policymakers. With permissions at such low levels, the industry risks falling well short of housing supply targets.
At present, housing delivery is stagnating at around 200,000 homes a year. This falls significantly short of the Government’s widely publicised promise to deliver 1.5 million homes over the course of this parliament.
In order to achieve that pledge, an average of 370,000 permissions would need to be granted each year. Current approval levels, however, are running at only around 60% of this requirement, leaving a major shortfall.
Neil Jefferson, chief executive of the HBF, explained that the sector is being squeezed by a combination of pressures. Rising regulatory costs and higher taxation are creating barriers, while delays in the planning system and limited access to finance are making matters worse.
Jefferson also pointed out that mortgage affordability is another obstacle holding back the market. Many first-time buyers are struggling to secure lending, and with no government support schemes available for this group for the first time in decades, demand for new homes is being artificially suppressed.
The result, according to Jefferson, is a fragile housing pipeline that is shrinking with each passing quarter. He warned that without meaningful action, the downward trajectory is likely to continue, and the confidence builders initially placed in the Government’s housing policies will begin to fade.
Supporting the HBF’s concerns, Glenigan’s September Construction Index provided further evidence of weakness in the housing sector. The report found that residential construction starts fell by 18% in August compared with the previous three months.
When compared with the same period last year, residential starts were down 16%, showing that the slowdown is not just short term but part of a broader trend.
Private housing has been particularly hard hit. According to Glenigan, activity fell by 16% during the latest reporting period and was also 16% lower than the year before, compounding the sense of decline across the industry.
Drilon Baca, economist at Glenigan, summed up the mood within the sector, saying that many contractors and subcontractors will be frustrated by what he described as a “false start” in terms of performance. The residential market, in particular, continues to struggle, and the outlook for meeting housing targets is becoming increasingly bleak.
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