Big fall in planning permission for new homes in England, study suggests

The number of planning permissions granted across England for new houses has fallen to a record low, new figures suggest.

The Home Builders Federation (HBF) said planning permissions continued to fall “sharply”, with the number of homes approved in first half of 2023 down by 19%.

The latest data confirms industry warnings that in the midst of an increasingly “anti-development” policy environment and worsening economy, the number of homes built in the coming years could fall to record low levels, said the HBF.

Around 2,456 projects were granted planning permission during the second quarter of the year, the lowest since similar records began in 2006, said the report.

This number is 10% lower than the previous quarter and 20% lower than a year ago.

The federation that if the trend continues it will lead to a reduction in housing delivery of 44,000 homes a year which would see housing supply for England fall to levels not seen for a decade.

Stewart Baseley, executive chairman of the Home Builders Federation said: “Over recent years the policy environment has become increasingly anti-development and anti-business and as a direct result we are seeing a sharp fall in the number of homes being built.

“The Government’s capitulation to the NIMBY lobby on planning, its mishandling of water legislation and amidst a lack of mortgage availability the lack of support for first time buyers could see housing supply drop markedly in the coming years.

“Fewer homes being built amidst an acute housing crisis has clear social implications, in particular for young people, and will reduce economic activity and cost jobs.”