England housing supply hits low as planning permissions fall

New reports from the Home Builders Federation (HBF) and Savills indicate a significant decline in the English housing supply. The number of private housing sites granted planning permission fell to 1,220 in the first quarter of 2026, the lowest level since 2006. Specifically, only 408 sites for 10 or more homes received approval, a sharp decrease from approximately 1,000 sites per quarter in 2016.

Total home approvals for the first three months of the year reached just over 54,000, which is well below the government's target of 300,000 annual completions. Current supply and consents appear to be flatlining at around 200,000 per annum. Savills notes that housing delivery is expected to remain static, potentially falling short of government policy targets by nearly 100,000 homes.

Industry experts attribute these trends to rising development costs and suppressed demand. The HBF estimates the cost of delivering a new house has increased by an average of £76,000 since 2020. Additionally, high regulatory costs, taxes, and a lack of affordable mortgage lending have impacted developer confidence and investment capacity, with smaller housebuilders being particularly affected by the challenging market conditions.