Planning Approvals Hit Record Low as England’s Housing Supply Flatlines
England’s housing supply crisis is deepening as the number of new home sites securing planning permission falls to its lowest level in two decades.
New figures from the Home Builders Federation (HBF) reveal just 1,220 private housing sites received planning approval in Q1 2026 – the lowest quarterly figure since records began in 2006.
Only 54,000 new homes were approved during the first three months of the year, raising fresh concerns over whether the government can deliver the level of housebuilding required to meet its ambitious housing targets.
New Home Approvals Fall Short of Target
Across the 12 months to Q1 2026, planning permission was granted for 216,141 new homes in England. This represents just 58% of the 370,000-home annual target established through the National Planning Policy Framework (NPPF).
Larger developments have been particularly affected. Only 408 sites containing 10 or more homes secured approval during Q1 – another record low and 13% fewer than a year earlier.
The South of England recorded the sharpest decline, with approvals for larger housing sites falling by 18%.
Housing Viability Threatens Development
Despite recent UK planning reforms aimed at accelerating housebuilding, developers warn that rising costs are making an increasing number of projects financially unviable.
HBF estimates the average cost of delivering a new home has risen by around £76,000 since 2020, driven by taxation, regulation and additional development requirements.
Higher mortgage costs and subdued buyer demand are adding further pressure, limiting developers’ ability to invest in new housing sites.
HBF Chief Executive Neil Jefferson warned that planning reform alone will not be enough to significantly increase new housing delivery without addressing affordability and development viability.
The upcoming Building Safety Levy is also expected to increase pressure on developers, with concerns that additional costs could prevent further housing schemes from progressing.
With planning approvals continuing to fall, the latest figures highlight the scale of the challenge facing the government’s housebuilding ambitions.
Industry leaders are now calling for a broader strategy combining planning reform, affordable mortgage lending and improved housing development viability to unlock new sites, increase affordable and private housing supply, create jobs and drive economic growth.
