Housing planning approvals sink to lowest level for more than a decade

The number of planning approvals for new homes in England has fallen to the lowest level in more than a decade, according to a new report by the Home Builders Federation.

The second quarter of 2026 saw the fewest planning approvals in a quarter since 2012 and the last twelve months has seen the fewest in a 12-month period since 2013.

Just 45,315  homes received planning approval in the second quarter of the year while the 214,515 homes approved in the year to quarter two was 8% down on the previous year and 36% below the 2017 peak.

The annual total represents just 58% of the 370,000 homes a year identified in the government’s National Planning Policy Framework as the level of permissions needed to support its target of delivering 300,000 net additional homes a year. 

The report shows the decline in planning permissions is particularly pronounced for larger developments with approvals for homes on sites with over 10 units in the months of April to June falling 21% from the previous quarter to 39,689 and 14% below Q2 2025. 

Approvals for private homes fell by 19% quarter-on-quarter and 15% year-on-year, while just 1,234 projects of three or more homes were approved in Q2, the lowest quarterly figure on record and 12% below Q1. 

HBF said the report, which is based on Glenigan data, reflects weak demand, constrained access to affordable mortgage lending and subdued market conditions alongside rising construction costs, taxes and policy requirements putting further pressure on viability. 

The organisation is calling for a moratorium on all further costs, taxes and levies on home building including the Building Safety Levy, which is due to come into effect next month.

HBF chief executive Neil Jefferson said the report shows “a housing pipeline being squeezed to historically low levels, with too few planning permissions coming forward to meet the country’s housing needs”. 

“The cumulative impact of higher taxes, increasing costs and layers of new policy requirements is making more and more sites unviable, while weak demand has been compounded by the absence of meaningful Government support for first-time buyers and a lack of affordable mortgage lending,” he said.

Jefferson welcomed Andy Burnham’s announcement of a first-time buyer support scheme at the weekend as a “hugely welcome step” but said the scheme must be “accessible to as many potential purchasers and home builders as possible.”