New home planning permissions approved in the third quarter of the year fell by a record 19% to just under 2,450 projects compared with a year ago, data from the Home Builders Federation shows.  

The body says the declines are part of an “increasingly anti-development policy environment” and are set to fall further under the revised National Planning Policy Framework set to be announced tomorrow (19 December) by the Department for Levelling Up Housing and Communities.  

Its Housing Pipeline report says:  

• 2,447 projects were granted planning permission, down 3% on the previous quarter and 19% lower than the same period last year  
• At 50,316, the number of homes granted permission in England during the third quarter was down 12% on the previous three months and 28% lower than the third quarter of 2022  
• In the year to September, the number of homes gaining permission was 245,872 – a 15% drop on the previous year and the lowest for a 12-month period since the third quarter of 2015

The housebuilding association says the number of sites granted planning permission in the past 12 months in England was “the lowest quarterly figure” posted since its report began in 2006.  

It adds: “The figures come ahead of the sweeping changes to the National Planning Policy Framework expected to be announced tomorrow that will inevitably lead to a further decline in planning permission approvals in the months and years ahead and might see housebuilding in some areas completely collapse.”  

The body points out: “The government’s proposals – a direct result of ministers caving to anti-growth Conservative backbenchers in December 2022 – are expected to water down requirements placed on local authorities to plan for enough homes to meet local housing needs.   

“The changes will, in effect, allow councils to build as few homes as they wish by removing the requirement for local housing needs assessments.   

“These assessments, calculated using a ‘standard method’, will instead be made advisory as a result of the revolt of MPs led by Theresa Villiers.”  

The federation says if the 15% slump in approved units this year outlined in its report translates into completions in 2024, the housing supply could drop to fewer than 200,000 next year, the lowest since 2014. 

Home Builders Federation executive chairman Stewart Baseley says: “This is the inevitable outcome of several years of anti-growth policy and rhetoric. 

“If ministers continue with the proposals to rid the planning system of targets and consequences, no matter how it is packaged, it will result in fewer new homes and represents another victory for nimby backbenchers. 

“Removing the requirement for local housing needs assessments and allowing councils to plan for as few homes as they wish will see housebuilding in some areas collapse with investment in jobs and communities all suffering. 

“Putting politics and party management above the interests of those households struggling amidst a worsening housing crisis may seem attractive in the short-term but the long-term consequences for the economy and society are horrendous.”