Planning approvals for new homes have fallen to their lowest quarterly level since 2012, deepening concerns over the future housing supply pipeline. Just 45,315 homes received planning permission in England during the second quarter of 2026, according to the latest Housing Pipeline report from the Home Builders Federation (HBF), based on Glenigan data.
That represents a 21% fall on the previous quarter. Over the 12 months to June, authorities granted permission for 214,515 homes. The HBF said this was the lowest annual figure since 2013. The total was down 8% year-on-year and 36% below the peak recorded in 2017.
Housing pipeline shrinks
The decline was particularly pronounced on larger developments. Approvals for homes on sites containing more than 10 properties fell 21% quarter-on-quarter to 39,689. That was also 14% below the same period last year. Private housing approvals dropped 19% compared with the previous quarter and 15% year-on-year.
Meanwhile, just 1,234 projects containing three or more homes secured approval during Q2. The HBF said that was the lowest quarterly figure on record. The 12-month total of 5,783 such projects also hit a record low. Overall, authorities approved 11,764 projects during the year. Sites containing just one or two homes accounted for around half.
First-time buyer scheme targets demand
The figures come days after the government announced plans for a new equity loan scheme aimed at first-time buyers. The Your First Home scheme will apply to new-build homes in England and is due to be confirmed at the Budget. The government expects it to support deposits as low as 2.5%, alongside a 20% government-backed equity loan. Developers participating in the scheme will also make a contribution.
The government has yet to announce property price caps, household income limits and implementation dates. Housebuilders hope the scheme will stimulate demand for new homes and give developers greater confidence to invest in new sites.
HBF warns over development costs
The HBF also renewed calls for the government to avoid adding further taxes, levies and policy costs to housebuilding. It estimates that the average cost of delivering a new house has increased by £76,000 since 2020, with larger increases for apartments. The trade body also highlighted the Building Safety Levy as another pressure on development viability.
Neil Jefferson, chief executive of the HBF, said: “These figures show a housing pipeline being squeezed to historically low levels, with too few planning permissions coming forward to meet the country’s housing needs.
“The cumulative impact of higher taxes, increasing costs and layers of new policy requirements is making more and more sites unviable, while weak demand has been compounded by the absence of meaningful Government support for first-time buyers and a lack of affordable mortgage lending.
“The prime minister’s announcement of a first-time buyer support scheme is a hugely welcome step, and we look forward to working with government to ensure the scheme is accessible to as many potential purchasers and home builders as possible.”
