The variety of planning approvals for brand spanking new properties in England has dropped to a document low throughout Labour’s first yr in authorities — dealing a blow to the occasion’s flagship pledge to construct 1.5 million properties earlier than the following common election.
Based on official knowledge, fewer than 29,000 housing initiatives have been granted planning consent by native authorities within the yr to June 2025.
New housing secretary Steve Reed, who just lately succeeded Angela Rayner within the position, described the figures as “unacceptable”, warning that reforming the planning system “gained’t occur in a single day.”
“I’ll depart no stone unturned to construct 1.5 million properties, so households have the important thing to house possession of their arms,” he mentioned.
Reed’s plans embody an overhaul of the Constructing Security Regulator’s efficiency and dealing with the mayor of London, Sadiq Khan, to unlock housebuilding within the capital.
The autumn in approvals has prompted criticism from the opposition. Conservative shadow housing secretary Sir James Cleverly mentioned Labour’s flagship planning reforms “clearly aren’t working”.
Separate knowledge from housing contractor Glenigan, exterior suggests 221,000 particular person properties have been granted permission within the yr to June, down from 237,000 the yr to June 2024.
Labour promised in its election manifesto to ship 1.5 million properties in England by the following common election. To get to that, there would should be a median of about 300,000 new properties per yr.
Neil Leitch, managing director of growth finance, Hampshire Belief Financial institution, commented: “The brand new housing secretary Steve Reed final week referred to as on the trade to ‘construct child construct’, however even with this reported rise the planning system stays a significant hurdle. Latest knowledge from the Residence Builders Federation confirmed approvals are at their lowest stage in 13 years, which makes the Authorities’s pledge to ship 1,000,000 properties this Parliament look more and more unrealistic. Builders need to construct, and lenders are able to help them, however the supply chain is solely not sturdy sufficient to show ambition into supply.
“The upcoming Finances is a chance to provide housebuilding a real increase, not solely by offering planning departments with better sources however by attracting extra expert individuals into planning roles. With out that funding, the system will stay too sluggish and inconsistent to help the properties we’d like.
“We additionally should be clear that at this time’s approvals should not tomorrow’s completions. Too many schemes stall between consent and supply, and if that pipeline continues to skinny out, the shortfall in housing output will solely develop. Planning isn’t the one barrier builders face, however it’s the one which unlocks every part else. For SME builders specifically, lengthy delays and uncertainty could make schemes unviable earlier than they even begin.”
