England housing planning approvals hit lowest level in over a decade

New data from the Home Builders Federation (HBF) indicates that planning approvals for new homes in England have dropped to their lowest levels in over a decade. In the second quarter of 2026, only 45,315 homes received planning permission, marking the fewest quarterly approvals since 2012.

The annual total for the year ending in June reached 214,515 homes, an 8% decrease from the previous year and significantly below the 370,000 annual permissions required by the government’s National Planning Policy Framework to meet its target of 300,000 net additional homes per year. The decline is particularly evident in larger developments; approvals for sites with more than 10 units fell by 21% compared to the previous quarter.

The HBF attributes this squeeze on the housing pipeline to several factors, including weak demand, limited access to affordable mortgages, rising construction costs, and increased policy requirements. The organization noted that the average cost of delivering a new house has risen by approximately £76,000 since 2020. HBF Chief Executive Neil Jefferson stated that the cumulative impact of higher taxes and new levies is preventing the industry from meeting the country’s housing needs.