Recent statistics indicate a significant uptick in planning applications for new residential properties in England, with applications reaching their highest level in four years. However, despite this promising trend, actual construction rates remain low, highlighting a complex landscape in the housing sector as the government aims to meet ambitious housing targets.
Increased Planning Applications
Data from the Planning Portal reveals that in 2025, there were 335,000 planning applications submitted for new homes outside London, marking a remarkable 60% increase compared to 2024. This upward trend is particularly evident in the final quarter of the year, where applications soared by 61% from the previous year, with 109,000 new homes applied for during this period alone.
This surge in planning applications has been partially attributed to recent reforms implemented by the Labour government, which have allowed for development on certain areas of lower-quality green belt land, termed “grey belt”. Geoff Keal from TerraQuest, the firm managing the Planning Portal, noted that these changes have streamlined the planning process, enabling applications that may have previously been stalled to progress.
The Challenge of Construction
Despite the increase in planning applications, the construction of new homes has not kept pace. The Ministry of Housing, Communities and Local Government has acknowledged the need for further action to meet Labour’s objective of building 1.5 million homes by 2029. The Local Government Association has cautioned that while reforms are a step in the right direction, they alone will not suffice to achieve the necessary housing volume. Key issues such as a shortage of construction workers and rising building costs continue to impede progress.
In parallel to the planning data, new figures concerning Energy Performance Certificates (EPCs) indicate a slight decline in the total number of homes registered in 2025 compared to the previous year. EPCs serve as an essential indicator of housing activity, as they are updated more frequently than official housing statistics. BBC Verify’s analysis highlighted that 99 out of 294 areas in England would need to significantly increase their new housing output to meet annual targets, emphasising the ongoing gap between planning and actual delivery.
Regional Variations and Future Outlook
While planning applications have risen across every region outside London, the capital has seen a decline of nearly one-third in applications compared to the previous year. This drop brings applications back to levels seen in 2023, despite the government’s recent move to grant the Mayor of London powers to expedite housing developments.
Industry experts remain cautious about immediate improvements in housing output. Edward Clarke from planning consultancy Lichfields noted that the transition from planning approval to actual construction can take considerable time. He suggested that if the government’s reforms are implemented effectively, there is potential to reach a target of 300,000 completed homes annually by the end of the current parliamentary term.
Government Response
In response to these findings, a spokesperson for the Ministry of Housing, Communities and Local Government reiterated the government’s commitment to not only increasing the number of homes but also improving their quality. They stated that ongoing reforms aim to dismantle barriers that have historically hindered housebuilding efforts in the country.
Why it Matters
The current landscape of housing in England underscores a critical intersection of policy, planning, and construction dynamics. The notable rise in planning applications reflects a governmental push towards addressing the housing crisis, yet the stagnation in actual building activities raises serious concerns regarding the feasibility of meeting ambitious housing targets. As the nation grapples with a pressing need for more affordable homes, the effectiveness of these reforms will be pivotal in shaping the future of housing in England, influencing both economic stability and community wellbeing.
