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Published: 18/08/2026
Planning permissions for new homes in England fell to their lowest level in 20 years of data in 1Q2026, highlighting the wider pressures on housing delivery despite recent changes to planning policy.
New data published by the Home Builders Federation (HBF) show that 1,220 sites were granted planning permission for private housing in the first quarter of 2026, the lowest level in the 20-year data series(1).
The HBF’s latest Housing Pipeline report, which uses data from Glenigan, also revealed 54,374 housing units secured detailed planning approval in England in 1Q2026 (2). This was down from more than 59,000 in the previous quarter and below the quarterly average recorded in recent years.
The figures arrived as the government published an updated National Planning Policy Framework (NPPF)(3). Under the revised framework, councils will be able to approve housing developments by default where they are within reasonable walking distance of well-connected train and tram stations.
The NPPF also sets minimum expectations for the quantity of housing development in these areas. Other changes are intended to make it easier for councils to approve developments that support employment, investment and local infrastructure.
BCIS chief economist Dr David Crothwaite said the latest planning reforms could aid development but stressed that planning policy is only one factor affecting housebuilding. Cost pressures and demand conditions remain significant constraints.
He said: ‘Easing planning rules could certainly support the saleability of new homes, with better connectivity making them more attractive to the buyer market. In practical terms however, this is still largely tinkering around the edges.
‘Housebuilding activity is down because private developers are facing a combination of well-documented cost pressures, including elevated materials prices, levies, taxes and standards, alongside softer demand.
‘Parts of the market are clearly maintaining strong performance despite these barriers. For example, private housing new orders increased by 12.9% year on year in 2Q2026. However, most indicators continue to point to a sustained downturn in activity.
‘It’s encouraging to see the government using the levers at its disposal to ease some of these pressures, but fundamentally, the supply of new homes comes down to cost and demand. Taking a holistic look at the cost pressures facing developers, alongside further measures to incentivise buyers, could go a long way to creating the right conditions for recovery.’
The HBF reported that 216,141 new homes were granted planning permission in England in the 12 months to 1Q2026. This is equivalent to around 58% of the government’s combined annual housing target of 370,000 homes, although planning permissions and housing delivery targets are not directly comparable measures.
Construction output data also indicate weaker housebuilding activity. According to ONS data, new public housing output decreased by 14.8% year on year in 2Q2026, while new private housing output fell by 6.7%.
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