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The variety of new properties given planning approval in England within the first three months of this yr was the bottom determine for 13 years, in line with new analysis which underlines the challenges dealing with Sir Keir Starmer’s authorities because it seeks to spice up housebuilding.
Solely 39,170 new properties obtained approval within the first quarter of 2025 in England, a drop of 55 per cent on the earlier three months and 32 per cent decrease than the identical interval of final yr, in line with new figures produced for the Residence Builders Federation.
The HBF knowledge tends to prefigure the official figures, resulting from be revealed later within the yr.
Neil Jefferson, chief government of the HBF, mentioned the figures have been “disastrous” for each the trade and the federal government’s ambition of accelerating new housing provide.
“With present provide flatlining and permissions for properties to be constructed over the following few years plummeting, until pressing interventions are made there appears little probability of us constructing the properties we all know are desperately wanted,” he mentioned.
Jefferson added that ministers should tackle the shortage of inexpensive mortgage lending and the absence “for the primary time in many years of any authorities assist scheme for first time consumers”.
Starmer has made the constructing of 1.5mn new properties in England throughout this five-year parliament considered one of his key pledges — equal to 300,000 new properties a yr.
However the HBF knowledge means that the rolling annual determine for housing models securing detailed planning approval was 225,067 within the yr to the top of March, a 7 per cent fall on the earlier 12-month interval.
That’s the lowest annual determine since 2012 and is properly under a excessive of 335,802 hit in early 2021.
Nevertheless Labour has expressed hopes that it will possibly increase growth by varied reforms to the planning system.
Final yr the federal government rewrote the “nationwide planning coverage framework” to reimpose housing targets on councils and is at present pushing a planning and infrastructure invoice by parliament.
The HBF’s Jefferson referred to as on the federal government to take motion to stimulate extra demand for brand new housing, together with bringing again fairness loans or shared fairness mortgage assist.
He additionally warned that housebuilders have been struggling underneath varied taxes and levies launched in recent times together with a residential property builders tax, nutrient neutrality fees and the “future properties normal” which is able to drive builders so as to add photo voltaic panels.
The Royal Establishment of Chartered Surveyors, the trade physique, mentioned useful resource constraints in native planning authorities and capability challenges for utility suppliers “have been creating friction within the system”.
“The important thing ingredient for the trade is readability,” mentioned Justin Younger, chief government of RICS. “Reforms to the Nationwide Planning Coverage Framework are nonetheless bedding into the sector, and uncertainty is a part of the explanation for the appliance slowdown.”
The British Property Federation, which has some members within the residential housing sector, mentioned “vital” delays on the Constructing Security Regulator resulting from lack of employees have been inflicting blockages.
“These figures will not be a shock to us,” mentioned Rachel Kelly, coverage director with the BPF. “Purposes which ought to take 8 to 12 weeks are taking 24 weeks, and even as much as a yr, to be finalised. Delays on the regulator are the most important barrier for the time being.”
Matthew Spry, senior director at planning and growth consultancy Lichfields, mentioned the trade had welcomed the federal government’s planning reforms.
“However to maneuver the dial on supply, these functions require expeditious willpower by native planning authorities: the federal government might want to quickly implement the present planning and infrastructure invoice.”
A ministry of Housing, Communities and Native Authorities spokesperson mentioned: “We all know that 1.5mn properties is a stretching goal, however we’re taking decisive motion to hurry up each stage of the planning course of and ship the properties and infrastructure we want by our plan for change.”
