Planning approvals for housing hit record lowin 2024
Just 2,260 sites were approved between July and September (Q3) last year, marking the lowest quarterly total since HBF reporting began in 2006.A rolling annual total of 10,180 sites approved also represented a record low, according to the HBF.The trade association, which published the Glenigan-gathered data in a housing pipeline report this week, says the all-time low in Q3 of 2024 was symptomatic of a continued downward trend in planning approvals, which fell 10 per cent between the second and third quarters of the year.AdvertisementAlthough there was a slight increase in the number of actual housing units approved in Q3 compared with Q2 creeping up by 2 per cent to 57,356 the total was still 40 per cent lower than the highest-ever peak.The decline was most pronounced in the North East, Yorkshire & the Humber and the West Midlands, with housing planning approvals plummeting by 61 per cent, 49 per cent, and 55 per cent respectively.London and a handful of other regions saw slight increases, but approvals remained far below historic levels, according to the HBF.Based on the data, approvals would need to increase by more than 150 per cent in order for the government to meet its annual housebuilding target of 370,000 homes, the organisation has said.Separate BBC analysis published yesterday (9 January) found that some local authorities in England would need to see at least a five-fold increase in new housing in order to meet their government targets.AdvertisementAcross England, 16 local authorities have been set targets that are 400 per cent or more of what they have recently delivered, according to the BBC.Responding to the stark statistics, the HBF has declared an urgent need for targeted interventions to address the decline in planning approvals. It describes government changes to the NPPF as encouraging but says swift action is now needed to streamline the planning process, tackle regional imbalances, and ensure the necessary infrastructure for new developments.HBF chief executive Neil Jefferson described the continued decline in housing planning approvals as deeply concerning.He said the significant regional discrepancies highlight the need for targeted interventions that not only speed up planning processes but also provide clear support for both developers and homebuyers.Jefferson added: 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.Despite the record-low approval rates, there was a slight uptick in on-site construction starts in the final quarter of 2024 (Q4), according to separately -published Glenigan data.Residential construction starts increased by 7 per cent between October and December, compared with the preceding three months, according to Glenigans January 2025 construction index although this was still 3 per cent lower than 2023 figures.On-site starts on social housing performed poorly on both counts, falling 1 per cent between Q3 and Q4, and plummeting by 17 per cent compared to the final quarter of 2023.2025-01-10Anna Highfieldcomment and share