Housing approvals sink to new low, report finds
The 12-month period ended 30 June 2024 saw 230,000 homes approved across the UK, the lowest figure in a decade, according to a report published by The Homebuilders Federation.
The figures, provided by Glenigan on behalf of HBF, highlight ongoing issues within the planning system that the government is seeking to rectify through the revised NPPF.
In Q2 of 2024, 53,379 units were approved. This is the lowest quarterly figure since 2014 and represents a 3% drop on the previous quarter and a 13% year-on-year, the report states.
Looking at Q2 in isolation paints a rosier picture for some regions.
The North West, Yorkshire & the Humber, West Midlands, East of England, and Scotland all saw a rise in the number of units approved during the second quarter compared to the first of 4%, 39%, 10%, 6%, and 20% respectively.
However, nationally, the report paints a bleak picture for housing delivery and reaffirms just how tough it will be for Labour to deliver on its promise of 1.5m homes in the next five years.
The 300,000 a year target has not been reached since the late 1960s.
Neil Jefferson, chief executive at HBF, has called on the government to announce interventions to get the housing market moving at the upcoming budget.
“The steep fall in planning permissions starkly illustrates the challenge the new Government faces to boost housing supply,” said Neil Jefferson, chief executive at HBF.
“The 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.
“Building 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.
He added: “The 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.”
