England New Home Planning Approvals Hit 14-Year Low
Planning permissions for new homes in England fell to a 14-year low in Q2 2026, reaching only 58% of government annual targets.
Planning approvals for new homes in England dropped to a 14-year low during the second quarter of 2026. Only 45,315 homes secured permission, marking a 21% decrease from the previous quarter. For the year ending June 2026, annual permissions fell 8% to 214,515, which represents only 58% of the 370,000 homes required to meet government targets. The decline was most pronounced in private housing and larger developments exceeding 10 units.
The Home Builders Federation attributed the slump to weak buyer demand, limited mortgage affordability, and rising development costs, noting that the average cost to deliver a new house has risen by £76,000 since 2020. The organization warned that higher taxes and new policy requirements are making an increasing number of sites economically unviable.
While the federation welcomed a first-time buyer support scheme announced by the Prime Minister, it called for a moratorium on further taxes and levies, specifically citing the upcoming Building Safety Levy. The industry body argues that such measures are necessary to prevent the housing pipeline from being squeezed further.
