Green-lit planning applications for housing have declined for the third year in a row
The number of homes receiving planning permission has fallen to its lowest level since 2014, according to figures from Ministry of Housing, Communities and Local Government (MHCLG),
In the year to June 2024, only 231,000 homes were green-lit by England’s district-level planning authorities, down 15% from the 270,000 approved in the year to June 2023. It is the lowest figure in the since 191,000 were approved in 2013.
The drop means approvals have fallen for three consecutive years.
Commenting on the statistics, housing secretary Angela Rayner said: “[The Tories] watered down housing targets, torpedoed housebuilding, and took a sledgehammer to the dream of a secure home.
“[They] put country before party, failing to stand up to the vested interests blocking growth and compounding their housing failure. That legacy makes our job all the harder, but it also makes it so much more urgent to reverse the decline.
The data also shows that England has reached a new record low for residential plans granted in Q2, with approvals dropping to 7,600 – a 40% decline from the most recent quarterly peak in Q3 2016, when over 12,900 approvals were granted. It is also a 5% drop compared to the same quarter last year.
Approved residential applications have fallen 8% year-on-year, reaching 31,600 in the 12 months to the end of June 2024.
Anna Ward, development partner and associate in residential development research at Knight Frank, said: ”The supply pipeline of new homes across England is under pressure, with new applications falling sharply in recent quarters.
”This has been driven by a weaker appetite to build in light of higher finance costs, a weaker sales market, rising build costs and planning delays. This has contributed to a plunge in new homes coming forward and illustrates the extent of the challenge for the UK government which has pledged to get Britain building again.
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”However, while challenges remain, the recent fall in mortgage costs and the fact that planning and development are front, and centre of the government’s objectives has already boosted sentiment and should give more developers confidence in bringing new housing projects forward.”
However, the number of housing units granted has also sunk to its lowest in a decade, since 217,000 proposals went through in 2014.
Tim Seddon, chief executive of Retirement Villages Group, commented: “Today’s figures again confirm that the national supply of new housing is paralysed, perpetuating an intergenerational challenge with huge implications for the health of our society.
“We’re encouraged to see the new government make housing supply a key priority. It’s clear the planning system needs urgent reform, and we would like to see pledges to fast-track urban brownfield site development and release lower quality ‘grey belt’ land implemented as soon as possible.”
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