Summary
Planning applications for new homes in England reached their highest level in four years in 2025, mostly due to changes in planning policies. Despite the increase in applications, actual home-building remains low, and challenges like worker shortages and rising costs continue to affect the construction industry.
Key Facts
- In 2025, planning applications for 335,000 new homes were submitted outside London, marking a 60% increase from 2024.
- Reforms allowing development on certain green belt lands, called "grey belt," contributed to the rise in applications.
- Every region in England except London saw an increase in planning applications for new homes in 2025.
- The Ministry of Housing claims it has improved the planning process to help boost housebuilding.
- Actual home-building lags, partly due to a shortage of construction workers and higher building costs.
- Energy Performance Certificates (EPCs), which track energy efficiency in homes, indicate that new housing numbers are slightly down from 2024.
- In the last part of 2025, registrations for new homes rose by 7% compared to the same period in 2024.
- The Office for Budget Responsibility predicts a continued decline in completed homes due to slow housing starts.
