Planning permissions for new homes in England fell to a 14-year low in the second quarter of 2026, raising fresh concerns over medium-term housing delivery targets.
Data compiled by the Home Builders Federation (HBF) reveals that just 45,315 homes secured planning approval during Q2 2026—a 21% drop compared to the previous quarter and the lowest quarterly total recorded since 2012.
Key Findings from the HBF Report
- Overall Approvals: 45,315 homes approved in Q2 2026, down 21% quarter-on-quarter.
- Major Schemes (10+ Units): Down 21% quarter-on-quarter to 39,689 units, representing a 14% annual decline.
- Record Low Project Count: Only 1,234 multi-unit residential projects (3+ homes) were granted approval during the quarter, marking the lowest quarterly figure on record.
- Development Build Costs: The HBF estimates the average cost of delivering a standard home has increased by £76,000 since 2020 due to materials inflation, statutory fees, and regulatory requirements.
Rising Costs and Regulatory Overhead Squeeze Viability
The HBF attributed the sharp contraction in approved units to a combination of weak consumer demand, high mortgage rates, and escalating development build costs.
Industry representatives warned that upcoming policy additions, such as the Building Safety Levy, will add thousands of pounds in fixed overhead per unit, rendering smaller edge-of-settlement sites unviable for regional SMEs.
While central government planning reforms aim to streamline approvals, housebuilders stress that mandatory targets must be matched by faster local determination times and development viability support.
The Bottom Line
A collapse in quarterly planning approvals to a 14-year low signals a sharp bottleneck in future housing completions. Without a rapid uptick in permissions, restricted new-build supply will continue to impact housing availability across England.
