The latest Housing Pipeline Report from the Home Builders Federation (HBF), featuring data from Glenigan, reveals a significant decline in planning approvals, posing a major challenge to the government’s housing supply targets.
Key findings from the Q3 2024 Housing Pipeline Report include:
- Lowest site approvals since 2006: Only 2,260 sites were approved between July and September 2024, marking a 10% drop from Q2 and the lowest quarterly total since the HBF began reporting in 2006.
- Units approved below targets: Although the number of units approved rose by 2% to 57,356 in Q3, this figure remains 40% below peak levels. The rolling annual total of 240,661 units is 6% lower than in 2023 and falls far short of the government’s target of 370,000 new homes annually—a 150% increase is needed to close the gap.
- Regional disparities: Planning approvals showed sharp declines in regions such as the North East (-61%), Yorkshire & the Humber (-49%), and the West Midlands (-55%). London saw a slight increase, but its 44,000 approved units in the past 12 months represent just 66% of peak levels.
Neil Jefferson, Chief Executive of the HBF said: “The continued decline in planning approvals is deeply concerning and underlines the scale of the challenge we face in addressing the country’s housing crisis.
“The recent efforts by the Government to reform planning policy are very welcome, but the data makes it clear that much more needs to be done to reignite housing delivery. Planning approvals will need to increase by more than 150% to meet the Government’s target of 370,000 homes annually, which is a huge leap from the current figures.
“We are seeing significant regional variation, with some areas experiencing severe drops in approvals, while others, like London, are still well below previous levels. This discrepancy highlights the need for targeted interventions that not only speed up planning processes but also provide clear support for both developers and homebuyers.
“The lack of affordable housing is impacting communities across the country, and without a stable demand for new homes, the industry lacks the confidence to invest in building the homes that are desperately needed.
“Increasing housing will require going beyond planning reform and addressing broader issues such as financing for homebuyers and a lack of providers in the market to take on the affordable housing developers build.
Continued intervention from the Government will be crucial to ensuring we have a robust housing market that can deliver for the nation and tackle the housing crisis head-on.”
The report emphasises the need for swift and targeted government interventions to tackle regional imbalances, streamline planning processes, and address the lack of affordable mortgage lending. These measures are crucial to restoring confidence among developers and meeting the housing demands of first-time buyers and young people.
As the UK faces mounting pressure to solve its housing crisis, industry leaders call for a collaborative approach that goes beyond planning reform to address broader issues like financing, infrastructure, and support for affordable housing providers.
The HBF Quarter 3, 2024 Report is now available to view.