The latest Housing Pipeline Report from the Home Builders Federation shows that the number of planning permissions granted for new homes in England was down 20% in 2023 and the number of sites approved was the lowest since it began recording in 2006.
The 10,527 sites granted permission in 2023 represented a 16% decrease on 2022, a 23% fall on 2021 and only around half of the average annual planning permissions in the 2015-19 years when government policies were focused on improving housing affordability.
The number of units gaining planning permission in England during 2023 dropped to the lowest for any 12-month period since 2014, at less than 233,000. This was 20% down on 2022, 27% on 2021 and down 30% compared to pre-pandemic averages.
While some regions saw a slight increase in the number of units approved in 2023 as compared to 2022, across the country there were significant dips when compared to 2021. Unit approvals for the north of England dropped 18% for 2023 compared to 2021, 23% for the Midlands and 28% for the south of England.
Stewart Baseley, executive chairman at the Home Builders Federation, said: “Amidst a deepening housing crisis and with house building levels already falling sharply, this report should send alarm bells ringing across government and the country.
“As we have been warning for some time, the sharp decline in housing supply is the inevitable result of several years of anti-growth policy and rhetoric. The politically driven weakening of the planning system will impact housing supply for years to come and needs to be urgently reversed.
“Allied to the total lack of support for buyers in the Budget and the resultant impact on demand for new homes, it is an increasingly gloomy climate for industry and for a generation still clinging to the dream of home ownership.
“Removing the requirement for local housing needs assessments and allowing councils to ignore the housing needs of their areas has been shown by the independent Competition & Markets Authority to significantly impact housing affordability moving forward.
“Rather than listening to the hysterical demands of anti-development backbenchers, ministers would be wise to consider the plight of aspiring homeowners and act on the recommendations of the CMA to restore local housing targets and address the long-term inefficiencies of the planning process.
“The social and economic implications of driving down housing delivery are deepening, with a generation unable to access decent housing and investment in jobs and communities all suffering. Putting short term politics over the needs of the country will have long-term consequences for the economy and society.”
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