"With the government’s recent commitment to get spades in the ground on the first three new towns before the next election, we can already see the focus turning to delivery, which is a promising sign"
- Geoff Keal - TerraQuest
Digital platform Planning Portal has recorded a sharp increase in new home applications in the third quarter of 2025.
Between 1 July and 30 September 2025, the number of new homes for which planning permission was sought was 68% higher than in the same period in 2024, according to the Planning Application Index for Q3 2025.
This rapid growth means applications are up 50% compared with the same point in 2024 and have already exceeded the total for the whole of 2023. These figures mark the highest quarterly applications in almost four years, with Q4 2021 being the last time numbers reached a similar level.
Market housing has led the increase, reaching its highest point since Q4 2023. Affordable housing has also seen a notable rise, with this quarter recording the most applications for this tenure since 2020. Affordable housing units now represent 43% of market housing applications.
Development ambitions are strong across England, with all but two regions, the South West and the North East, showing substantial year-on-year growth. The North West, East of England, and South East all saw the number of applications in Q3 more than double compared with the same period last year.
The surge coincides with the government’s target to build 1.5 million new homes by the next general election in 2029.
“This is a clear statement of intent from housebuilders, taking to heart the government’s determination to drive housing delivery," said Geoff Keal, CEO at TerraQuest, which operates Planning Portal. "The figures will also be welcome news beyond the housing sector, with new homes widely recognised as a cornerstone of the country’s future economic prosperity."
“What is less clear, however, is how these promising housing application figures will translate into delivery. We typically see some attrition along the way from application to delivery, whether through applications being refused, changes of plans on the part of developers, or economic changes rendering plans unviable."
He added, “With the government’s recent commitment to get spades in the ground on the first three new towns before the next election, we can already see the focus turning to delivery, which is a promising sign."
“The industry now needs to come together, alongside government, and take the proactive steps necessary to get the country building.”
Dinny Shaw, head of planning at Places for People, said, “It is crucial that affordable housing is central to the delivery of new homes. Housing associations like Places for People are essential to meeting the government’s ambitious housing targets. While the financial capacity of housing associations is improving, planning departments must be resourced to match that momentum; otherwise, progress will continue to stall.
“Alongside immediate delivery, we also need to back a long-term strategy. Investment in new towns is an effective way of achieving scale and building new neighbourhoods around community and infrastructure-first principles. We welcome the government’s recent announcement of 12 strategic sites for new towns – a crucial step in delivering mixed-tenure housing and truly sustainable communities.”
“There is no doubt that the Government’s reforms in the revised National Planning Policy Framework (NPPF) have created a notable shift in market confidence, with greybelt playing a central role in unlocking successful consents," added Shane Aherne, at Edit Land. "While delivery challenges persist, the scale of proposals coming forward reflects a renewed ambition across the sector."
“The report highlights that PLCs are driving much of this momentum, which, while essential for housing and large-scale infrastructure delivery, also underlines the need to streamline planning processes and reduce cost risk so SMEs can bring forward high-quality, locally driven schemes. Slow sale rates remain a concern for delivering these consents at the required pace, and may need to be addressed through a combination of SDLT restructuring and the reintroduction of Help to Buy to stimulate the market.
Aherne concluded, “These trends are shaping our outlook positively from a planning perspective, but more cautiously when it comes to delivery and sales. The growing scale of applications demonstrates long-term commitment, particularly from larger developers, and points to potential delivery at pace, though this may be constrained if slow sales rates persist."
"Within the industry, there is a strong sense of an 18-to-24-month window of opportunity to bring forward applications, alongside genuine concern that a change of government could add further uncertainty.”
