"What’s needed now is decisive action to tackle broader market constraints. Ministers need to look beyond tweaks to the planning system and take a proper look at the market fundamentals that ultimately determine how many homes can be built"
- Neil Jefferson - Home Builders Federation
The number of new home planning permissions in England dropped sharply in the second quarter of 2025, falling 17% year-on-year to their lowest point since 2012, according to the latest Housing Pipeline report from the Home Builders Federation (HBF) and Glenigan.
During the quarter, 44,520 homes were granted planning permission compared with 53,806 in the same period of 2024. The total also represents a 33% fall from the peak level recorded in previous years.
The number of sites gaining approval also hit record lows. Just 1,410 sites were approved in the second quarter, marking the tenth consecutive quarter of decline. In the 12 months to June 2025, 8,200 sites gained consent, the lowest rolling total since the Pipeline series began 20 years ago and less than half the number recorded in 2019.
Rolling totals highlight long-term weakness
The rolling annual total of homes granted planning permission fell to 221,900 in the year to June 2025, the lowest level in 12 years. HBF noted that around 370,000 permissions per year would be needed to meet the government’s goal of building 1.5 million homes by 2029. Current approval rates equate to only 60% of that requirement.
HBF described the figures as “another sign that weaknesses in the housing market and rising taxes on new homes continue to suppress investment in new housing sites”. The federation also stressed that while recent changes to the planning system had been “warmly welcomed”, they would not be enough on their own to increase housing output.
Regional variations
Some regions saw improvements compared with the first quarter of 2025. Approvals in the North West rose by 11%, Yorkshire and the Humber by 42%, the East Midlands by 2%, and the South East by 12%. However, approvals declined in all other regions across England.
Industry concerns
“Today’s figures reflect the true state of play for the home building industry,” commented Neil Jefferson, HBF’s CEO. “Mounting pressures are limiting viability as rising regulatory costs and taxes are being compounded by delays in processing planning applications, making it increasingly challenging to operate, particularly for the nation’s smaller builders."
“Meanwhile, 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.
“What’s needed now is decisive action to tackle broader market constraints. Ministers need to look beyond tweaks to the planning system and take a proper look at the market fundamentals that ultimately determine how many homes can be built."
“Investment in new homes depends on the building of those homes being economically viable and for there to be a realistic chance of selling new homes. Loading more and more taxes on home building is working against the overarching objectives of the government to build more homes.”
