Planning approvals hit record low – will the Government build 1.5m homes?

The Government’s housebuilding targets have come under more pressure after official data shows planning approvals are at record lows.

The figures show that 80,400 applications were received between April to June 2025, down 5% from the previous year. Planning authorities decided 80,000 applications, down 1% from the previous year. The number of applications which were granted was up 1% annually to 70,800.

Hannah Aldridge, senior research and policy analyst at the Resolution Foundation, said:

“Planning approvals in the second quarter of 2025 were at their lowest level since records began. While a single planning application can cover multiple units of housing, separate data suggests that the number of individual dwellings being approved has also fallen.

“Planning permission is the first step of the process – building these homes will take time, and inevitably not all approved applications will be built. But these figures are an advanced indicator of future housing supply, and the drop in approvals casts doubt on the Government’s ability to meet its target of 1.5m additional homes by the end of the Parliament.”

Fergus Charlton, planning partner with national law firm Michelmores, added:

“Government will achieve its objectives better if it focused on demand-side matters. 

“That said there are plenty of delays embedded into the planning system, removal of which will help the supply-side. For instance a model form section 106 would reduce negotiation time, or a prohibition on types of low impact pre-commencement conditions that can be imposed, focusing on those which would be more efficiently discharged later in the build process.”

New Housing Secretary Steve Reed tried to address the lack of new build supply earlier this week at an industry meeting where he pledged to 

work in partnership with industry leaders to ramp up housebuilding, focusing on the remaining barriers, including complex planning processes.

Nathan Emerson, chief executive of Propertymark, said:

 “It’s positive to see that there has been an emphasis from the new Housing Secretary to put plans in place to speed up the delivery of homes across England.

“Legislative efforts are being moved forward, such as the Planning and Infrastructure Bill, which is heading towards Report Stage, and looks to streamline the planning process and make it simpler to build new homes. However, as it currently stands, there is some way to go to not only meet the UK Government’s ambitious housebuilding targets but also reach the continuing demand for appropriate properties in suitable locations.

“With building costs escalating and ongoing issues concerning a lack of supply, there is little confidence that, given the current disparity in supply and demand, we are going to see a sudden upturn in the numbers without further intervention. The UK Government must prioritise its commitment to invest in homes of all tenures, as an increase in housing supply will help to stabilise house prices and rents.”

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