The Home Builders Federation鈥檚 latest Housing Pipeline Report, finds that the number of units and sites gaining planning approval in Great Britain continued to plummet in the second quarter of 2024.
Just 53,379 units were approved during Q2 2024, the lowest quarterly figure since 2014. This is a 3% drop on the previous quarter and a 13% drop on Q2 2023.
The data, collated by Glenigan, also finds that the 12 months to end of June 2024 saw the fewest new home permissions granted for more than a decade.
The number of permissions for both building sites and actual homes in England have been on a downward trajectory for the last two years, the Home Builders Federation (HBF) says, with record lows being hit in each quarter. In the last 12 months, little more than 230,000 units were granted planning permission in Great Britain, the lowest figure for any 12-month period in the last decade.
Looking back five or six years, when housing supply was at its peak of around 240,000 homes a year, the number of units being approved in a 12-month period was consistently around 100,000 (45%) higher than it is currently.
The HBF report also found:
- 10,400 sites were approved in the year to June, the lowest figure for any 12-month period since the report began in 2006.
- This is a 10% drop on the same period last year, and a 53% drop on the peak in 2008. This is also a 7% drop on the previous quarter and a 9% drop on the same quarter last year.
- The drop in approvals was more severe in certain regions. In London, units approved dropped 20% on the previous quarter and by 42% compared to the same quarter last year. At 6,159, the quarterly total was the lowest since 2012 and at 40,466, the 12-month total was the lowest since 2013.
- The northeast and east midlands also saw significant drops compared to the same period last year, at 50% and 42% respectively.
While house-builders are general optimistic about the impact of the new government鈥檚 promised planning reforms, these may not be enough, according to the HBF, without a revival of government aid for first-time buyers or some other subsidy scheme for house-builders鈥� customers.
HBF chief executive Neil Jefferson said: 鈥淭he steep fall in planning permissions starkly illustrates the challenge the new government faces to boost housing supply. Whilst the speedy interventions on planning are very welcome, there are a number of determinants on housing supply levels.
鈥淭he lack of affordable mortgage availability means more support for buyers is needed. Creating demand for new homes provides the confidence the industry needs to invest and deliver both private and affordable homes.
鈥淏uilding the homes we need will generate hundreds of thousands of jobs, create investment in communities and economies in every region and deliver the growth the country desperately needs.
鈥淭he upcoming budget provides an opportunity for the government to take more positive steps to address the mounting housing crisis and to commit to their pledge to get Britain building again.鈥�
Got a story? Email news@theconstructionindex.co.uk
