Are Home Planning Approvals at a Record Low?

The recent announcement by the housing secretary sheds light on the alarming decline in planning approvals for new homes in England, which reached a record low during the first year of the Labour government. With fewer than 29,000 projects granted permission in the year ending June 2025, achieving the government's ambitious target of 1.5 million new homes by the next election seems increasingly challenging.

Last updated: 07 October 2023 (BST)

• Planning approvals for new homes in England fell to a historic low in June 2025.
• Only 29,000 projects were approved, contradicting Labour's promise of 1.5 million new homes.
• The proportion of applications approved has increased, despite the overall decline in numbers.
• Government plans include a £39 billion investment over the next decade for housing.
• Delays in decision-making due to backlogs are affecting housing supply.

The Current State of Housing Approvals

According to official data, planning approvals for new housing in England have plunged, with councils granting permission for fewer than 29,000 projects in the year ending June 2025. This figure marks a significant setback in the government's commitment to deliver 1.5 million homes by the next general election, a promise made in Labour's election manifesto. To meet this ambitious target, an average of approximately 300,000 new homes would need to be built each year.

In the three-month period from April to June 2025 alone, only about 7,000 applications for housing were approved, the lowest quarterly figure since records began in 1979. This represents an 8% decrease compared to the same period in 2024. Notably, planning applications can be classified as "minor" for fewer than 10 homes or "major" for 10 or more, and the data indicates a decline in both the overall number of approvals and the total decisions made by councils.

Government Response to the Decline

Steve Reed, the newly appointed housing secretary, described the current situation as "unacceptable." He stressed the need for reform and indicated that addressing the planning system's issues "won't happen overnight." Reed's commitment is to ensure that families have access to home ownership, and he aims to leave "no stone unturned" in achieving the target of 1.5 million homes.

To facilitate this, Reed outlined several plans, including an overhaul of the Building Safety Regulator's performance and collaboration with the Mayor of London, Sadiq Khan, to expedite housing development in the capital. These initiatives build on previously announced reforms, including setting housing targets for local councils last December.

Investment in Housing

The government has also pledged a substantial £39 billion investment over the next decade to construct hundreds of thousands of new social and affordable homes. These investments are critical in addressing the current housing crisis and ensuring that there is sufficient affordable housing available for families in need.

Challenges Facing the Housing Market

Despite the government's ambitious plans, various challenges remain that could hinder progress. Government figures indicate a decline in new homes receiving their first energy performance certificate (EPC) during Labour's first year in office. EPCs are a crucial indicator of new housing developments, and the slowdown has been attributed to the previous Conservative government's policies.

While the Planning Portal, a service used to apply for housing permission, has reported a rise in new applications, the decision-making process can take several months due to existing backlogs. Geoff Keal from the Planning Portal noted that although application numbers are increasing, the approvals for this wave of applications may not be reflected until later in the year.

The Market's Perspective

Housing market analyst Neal Hudson from BuiltPlace highlighted that while Labour's housing policies were proactive, they might be addressing the wrong issues. He pointed out that housebuilders and developers are unlikely to plan for and construct new homes if there is insufficient demand from buyers, particularly in light of the current high house prices and mortgage rates. The government's affordable homes programme has also come under scrutiny for not meeting the aspirations set for the 1.5 million homes target.

What Happens Next?

As the housing crisis continues to unfold, the government faces mounting pressure to deliver on its promises. The upcoming months will be crucial in determining whether the planned reforms can yield the desired results in increasing housing supply. Observers will be closely monitoring the effectiveness of the housing secretary's initiatives and the impact of the proposed investments on the housing landscape.

Conclusion

The current state of planning approvals for new homes in England raises significant concerns about the government's ability to deliver on its housing promises. With record lows in approvals and ongoing challenges in the market, it remains to be seen how the Labour government will navigate these obstacles. The effectiveness of their strategies and investments will be critical in shaping the future of housing in England.

FAQs

What is the current number of housing approvals in England?

As of June 2025, fewer than 29,000 housing projects were granted planning approval, marking a record low in England.

What are the government's housing targets?

The UK government aims to deliver 1.5 million new homes by the next general election, requiring an average of about 300,000 new homes annually.

What challenges are affecting housing approvals?

Challenges include high house prices, rising mortgage rates, and backlogs in the planning decision process, which delay approvals for new housing applications.

What investments is the government making in housing?

The government has pledged £39 billion over ten years to build hundreds of thousands of new social and affordable homes to address the housing crisis.

How does the decline in EPCs impact housing?

A decline in new homes receiving energy performance certificates indicates a slowdown in housing development, which could affect the overall housing supply.