Izzy Lepone 01 October 2026

New home building slows as planning approvals decline

New home building slows as planning approvals decline image
© Dusan Petkovic / Shutterstock.com.

Planning approvals for new homes have hit a record low, research has found.

According to new figures from the Home Builders Federation (HBF), the number of new homes receiving planning permission has decreased by 21% over the last quarter.

The research revealed that only 45,315 new homes were granted planning permission in England in Q2 2026, with larger developments being impacted most by this decline.

In its Housing Pipeline Report, published on Tuesday, the HBF confirmed that this is the lowest quarterly amount since 2012.

The figure is also just 58% of the 370,000 homes a year outlined by the Government in its National Planning Policy Framework as the level of permissions required for its 300,000 additional homes a year target to be met.

HBF has welcomed the Government’s announcement on supporting first-time buyers and increasing housing supply, but emphasised that the scheme must be ‘both attractive to as many first-time buyers and accessible to house builders of all sizes’.

Neil Jefferson, Chief Executive at the Home Builders Federation, says: ‘These figures show 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.

‘The Prime Minister’s announcement of a first-time buyer support scheme is a hugely welcome step, and we look forward to working with Government to ensure the scheme is accessible to as many potential purchasers and home builders as possible.’

The MHCLG has been contacted for comment.

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