Will Rayner Succeed? Planning approvals for new homes fall further

Will Rayner Succeed? Planning approvals for new homes fall further


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Figures from the Home Builders Federation show a continued downward trend in planning approval figures for Q3 2024 in both the number of sites and units approved.

This illustrates the scale of the task for Deputy Prime Minister and Housing Secretary Angela Rayner to meet the target of 1.5m new homes by mid-2029.

With just 2,260 sites approved in the months of July to September, this marks a 10% decline from the previous quarter and the lowest quarterly total recorded since the HBF reporting in 2006. The rolling annual total of 10,180 sites approved also represents a record low, further illustrating the significant challenges the UK housing sector faces in meeting growing demand.

Using data from construction consultancy Glenigan, the HBF says that while the number of units approved during Q3 increased by 2% to 57,356, this is still 40% below the peak. 

The rolling annual total of 240,661 units saw a modest 1% rise from Q2 2024 but remains 6% lower than the same period in 2023.

To meet the government’s target of 370,000 new homes annually, approvals need to increase by over 150%.

Regionally, the decline in planning approvals has been especially pronounced in the North East, Yorkshire & the Humber, and the West Midlands. Although regions like London saw slight increases, the numbers remain far below historic levels.

The federation claims that these figures highlight the urgent need for targeted interventions to address the decline in planning approvals. It believes the government also needs to address the lack of available affordable mortgage lending that is suppressing the huge real demand for new homes and is particularly hampering first-time buyers and young people’s ability to get on to the housing ladder. 

Neil Jefferson, chief executive of the HBF, calls the figures “deeply concerning” and comments:  “The recent efforts by the government to reform planning policy are very welcome, but the data makes it clear that much more needs to be done to reignite housing delivery. 

“We are seeing significant regional variation, with some areas experiencing severe drops in approvals, while others, like London, are still well below previous levels. This discrepancy highlights the need for targeted interventions that not only speed up planning processes but also provide clear support for both developers and homebuyers.

“The lack of affordable housing is impacting communities across the country, and without a stable demand for new homes, the industry lacks the confidence to invest in building the homes that are desperately needed.”

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