In the year to Q2 2026, permissions were granted for 214,515 homes, the lowest annual total since 2013, down 8% on the previous year and 36% below the 2017 peak.
The annual total amounts to just 58% of the 370,000 new homes needed to keep up with targets under the NPPF of 300,000 new homes a year, or 1.5m over the five year term of the government.
The HBF says that the collapse in supply reflects weak effective demand, constrained access to affordable mortgage lending and subdued market conditions, which limit confidence and reduce home builders’ ability to invest in new sites. At the same time, the HBF asserts, rising construction costs, taxes, levies and policy requirements are putting further pressure on development viability.
The report shows the decline in planning permissions is particularly pronounced for larger developments, as approvals for homes on sites with over 10 units in the months of April to June fell 21% from the previous quarter to 39,689 and 14% below Q2 2025. Approvals for private homes fell by 19% quarter-on-quarter and 15% year-on-year.
There were also just 1,234 projects of three or more homes approved in Q2, the lowest quarterly figure on record and 12% below Q1. The 12-month total of 5,783 was also the lowest annual figure on record. Overall, 11,764 projects were approved in the year to Q2, with very small sites of one or two homes accounting for around half of all projects.
The HBF takes the position that the governments new First Homes scheme will support buyers and stimulate supply. At the same time, it argues, new taxes and policy costs are making sites economically unviable, and calls for a moratorium on further policy costs, taxes and levies.
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