Stalled, baby, stalled? Government’s new homes building plans in disarray

The latest figures on planning approvals show that only 208,000 homes were approved in the last year, down 15%, leaving Housing Secretary Steve Reed well short of his target.

steve reed house building

The Government’s 1.5 million new homes target is looking like a forlorn hope after the latest set of planning figures were released.

New data from the Ministry of Housing, Communities and Local Government reveals that permission for 208,000 homes was given in the year to September, when 300,000 new builds per year are needed.

Down 15%

That total is down 15% from the 245,000 homes granted permission in the year to September 2024 at a time when ministers want to see building ramped up.

Housing Secretary Steve Reed (main picture) has been quoted as saying his priority was ‘build baby build’ as he tries to galvanise the country to create more homes.

Other figures show that 37,700 decisions were made on applications for residential developments, of which 28,500 (76%) were granted, down 8%.

Major developments

Major residential developments granted were 3,700, down 3% from the previous year.

This news comes as the Planning and Infrastructure Act, which is designed to speed up approvals, was passed last week.

Meeting such a significant target before 2029 is becoming increasingly challenging.”

Nathan Emerson, CEO of Propertymark
Nathan Emerson, CEO, Propertymark

Nathan Emerson, CEO at Propertymark, says: “While we welcome the UK Government’s ambition to reform the planning system and make greater use of brownfield and ‘grey belt’ land to help deliver 1.5 million new homes in England, meeting such a significant target before 2029 is becoming increasingly challenging.

“A substantial increase in housing supply is essential to help rebalance house prices over the longer term, particularly while demand for new homes remains high.

Falling short

“However, without a sufficiently skilled workforce to deliver thousands of homes each day, the UK Government risks falling short of its target,” he says.

“Now that the Planning and Infrastructure Bill has received Royal Assent, we look forward to seeing further clarity on how the necessary skills, capacity and supply chain will be put in place, alongside a realistic and deliverable timetable for bringing these homes forward.”

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