"We are seeing significant regional variation, with some areas experiencing severe drops in approvals, while others, like London, are still well below previous levels"
- Neil Jefferson - Home Builders Federation
The latest Housing Pipeline Report from the Home Builders Federation for Q3 2024 has revealed that approvals for both sites and units have continued their downward trend, with 2,260 sites approved between July to September - a 10% fall on the previous quarter. HBF said this was also the lowest quarterly total since the Pipeline series began in 2006.
HBF said the rolling annual total of 10,180 consented sites was also a “record low”.
Despite data, compiled by Glenigan, revealing some rises in the number of units approved, HBF said the trend here was still overall down, explaining that during Q3, approved units rose 2% to 57,356 but this was still 40% below the peak.
HBF said planning approvals would now need to increase by more than 150% to meet the government’s goal of 370,000 new homes annually.
“This uncertainly in the market, allied to the lack of registered providers in a position to take on the affordable homes provided as part of the planning permission, is preventing housebuilders from investing in new sites and planning permissions and pressing the accelerator on housing supply, despite the positive planning interventions the government has made,” HBF stated.
The latest Pipeline report also shows a decrease in the number of projects achieving approval across all regions against the previous quarter, except the North East which experienced a slight increase of 3%.
“The continued decline in planning approvals is deeply concerning and underlines the scale of the challenge we face in addressing the country’s housing crisis," explained Neil Jefferson, HBF’s CEO.
"We are seeing significant regional variation, with some areas experiencing severe drops in approvals, while others, like London, are still well below previous levels. This discrepancy highlights the need for targeted interventions that not only speed up planning processes but also provide clear support for both developers and homebuyers.
Jefferson added: “The lack of affordable housing is impacting communities across the country, and without a stable demand for new homes, the industry lacks the confidence to invest in building the homes that are desperately needed.
“Increasing housing will require going beyond planning reform and addressing broader issues such as financing for homebuyers and a lack of providers in the market to take on the affordable housing developers build.
He concluded: “Continued intervention from the government will be crucial to ensuring we have a robust housing market that can deliver for the nation and tackle the housing crisis head-on.”
