Housing approvals stabilise amid planning shakeup

The number of planning approvals for new homes in England rose by 1% in the third quarter compared with the previous three months, reaching just over 7,100. The approval rate remained high at nearly 80%, according to official data.

The latest data points to a tentative improvement in the number of residential projects coming forward – for both minor applications under 10 units and major 10 plus unit schemes. 

In the capital, planning approvals remained flat in Q3 compared with the previous quarter at 1,214, with the approval rate staying above 70% for the fifth consecutive quarter.

Approvals have stabilised as planning reform continues to be a central government focus. During Labour’s time in office so far – now coming up to a year and a half – the government has restored and raised mandatory housing targets for councils, announced an extra £48 million to boost planning capacity, and this week has launched a major consultation on a revamped National Planning Policy Framework.

The NPPF sets out the government's planning policies for England and lays out how these rules should be applied.

For the housing sector, the key change under consultation is making development of suitable land in urban areas acceptable by default. 

Proposals such as a “default yes” for housing development near transport hubs — including sites within the green belt — would reduce uncertainty, restore developer confidence, and help unlock much-needed homes.

The recent stabilisation of planning approvals across the country comes after more than a 30% fall over the past decade (see chart below). 

The latest provisional figures show that permission for 208,000 homes in England was given in the year to September 2025, down 15% from the 245,000 homes granted permission in the year to September 2024, according to Glenigan.