New figures published by the Home Builders Federation (HBF) show the number of new homes receiving planning permission has fallen by 21% in the last quarter
The latest Housing Pipeline report, based on Glenigan data, shows just 45,315 new homes received planning permission in England in Q2 2026, the lowest quarterly total since 2012.
In the year to Q2 2026, planners granted permission for 214,515 homes, the lowest annual total since 2013, down 8% from the previous year and 36% below the 2017 peak.
The fall in planning approvals for new homes supports the government’s decision to introduce a new equity loan scheme to support first-time buyers and boost housing supply.
Fall in planning approvals particularly prevalent in large developments
The report shows the decline in planning permissions is particularly pronounced for larger developments, as approvals for homes on sites with over 10 units fell 21% from the previous quarter to 39,689 in April to June and were 14% below Q2 2025.
Approvals for private homes fell by 19% quarter-on-quarter and 15% year-on-year.
There were also just 1,234 projects of three or more homes approved in Q2, the lowest quarterly figure on record and 12% below Q1. The 12-month total of 5,783 was also the lowest annual figure on record.
Overall, 11,764 projects were approved in the year to Q2, with very small sites of one or two homes accounting for around half of all projects.
Government’s first-time buyer scheme must be accessible to all developers
The government’s announcement over the weekend has been broadly welcomed by industry as a potential solution to one of the major barriers to increasing housing supply.
However, until full details are confirmed, the focus must be on ensuring the scheme is both attractive to as many first-time buyers and accessible to house builders of all sizes if it is to deliver a much-needed market stimulus.
Neil Jefferson, HBF chief executive, explained: “These figures show a housing pipeline being squeezed to historically low levels, with too few planning permissions coming forward to meet the country’s housing needs.
“The cumulative impact of higher taxes, increasing costs and layers of new policy requirements is making more and more sites unviable, while weak demand has been compounded by the absence of meaningful government support for first-time buyers and a lack of affordable mortgage lending.”
He concluded: “The prime minister’s announcement of a first-time buyer support scheme is a hugely welcome step, and we look forward to working with government to ensure the scheme is accessible to as many potential purchasers and home builders as possible.”
