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Recent findings indicate that England saw the lowest number of new homes receiving planning approval in the first quarter of this year, a stark reminder of the hurdles facing Sir Keir Starmer’s government in its aim to enhance housing construction.
Just 39,170 new properties got the green light during the first quarter of 2025, marking a 55% decrease from the preceding three months and down 32% compared to the same timeframe last year, based on data compiled for the Home Builders Federation (HBF).
The HBF statistics often anticipate the official numbers that will be released later this year.
Neil Jefferson, CEO of the HBF, described the statistics as “disastrous” for the housing industry and the government’s goal of increasing housing supply.
“With supply stagnating and permissions sharply declining, immediate action is necessary; otherwise, we stand little chance of constructing the urgently needed homes,” he stated.
Jefferson urged that the government needs to tackle the issue of insufficient affordable mortgage options and the lack of any first-time buyer assistance schemes for the first time in many years.
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Starmer has committed to building 1.5 million new homes in England over the duration of this five-year parliament, which translates to around 300,000 homes annually.
Nevertheless, HBF data indicates that the rolling annual total for housing units granted detailed planning approval was only 225,067 for the year ending in March, representing a 7% decline from the previous year.
This number is the lowest annual statistic since 2012 and falls significantly short of the peak of 335,802 seen in early 2021.
Despite this, Labour is optimistic about enhancing development through various planning reforms.
Last year, the government updated the “national planning policy framework” to reinforce housing targets for local councils and is currently advancing a planning and infrastructure bill in parliament.
Jefferson from HBF stressed the necessity for the government to stimulate more demand for new housing, suggesting the reintroduction of equity loans or shared equity mortgage assistance.
He also cautioned that builders are facing difficulties due to various taxes and levies that have been imposed in recent years, including a residential property developers tax, nutrient neutrality charges, and the “future homes standard” mandating the installation of solar panels.
The Royal Institution of Chartered Surveyors (RICS) reported that limitations in local planning authority resources and issues with utility providers were causing disruptions in the system.
“For the industry, clarity is essential,” remarked Justin Young, CEO of RICS. “Ongoing adjustments to the National Planning Policy Framework are still being integrated into the sector, and uncertainty is a significant factor contributing to the slowdown in applications.”
The British Property Federation, which includes members from the residential housing sector, indicated that significant delays at the Building Safety Regulator due to staffing shortages are creating bottlenecks.
“These statistics are not surprising to us,” said Rachel Kelly, policy director at the BPF. “Applications that should take 8 to 12 weeks are taking 24 weeks or even up to a year to finalize. Delays at the regulator currently present the greatest obstruction.”
Matthew Spry, senior director at Lichfields, a planning and development consultancy, expressed support for the government’s planning reforms.
“However, to impact delivery, these applications need quick decisions from local planning authorities: the government must rapidly implement the current planning and infrastructure bill,” he urged.
A spokesperson from the Ministry of Housing, Communities and Local Government stated: “We recognize that the target of 1.5 million homes is ambitious, but we are taking decisive measures to expedite every phase of the planning process and ensure the delivery of the necessary homes and infrastructure through our change plan.”
