Plans for new homes surge by two-thirds in a year

Planning Portal, the digital platform through which more than 95% of planning applications in England are submitted, has recorded a surge in the number of new homes applied for in the third quarter of 2025.

The number of new homes for which planning permission was sought from 1 July to 30 September 2025 was 68% higher than during the same three-month period in 2024, according to the latest Planning Application Index for Q3 2025, launched at the National Planning Conference in Manchester today.

This rapid uptick in new homes applied for in Q3 means numbers are up by 50% against those seen at the same point in 2024, and outperforming the entirety of 2023. The figures are the highest for a single quarter in almost four years, with Q4 2021 the last time applications were above the current level.

The surge in applications has been led by market housing, which has seen the biggest increase, reaching its highest level since Q4 2023. Notably, affordable housing has seen a significant boost, with the Planning Portal this quarter recording the highest number of applications for this tenure since 2020. In fact, affordable housing units this quarter were equivalent to 43% of market housing applications.

Development ambitions also appear strong across England, with all but two regions – the South West and the North East – showing substantial year-on-year growth in housing applications. The North West, East of England and the South East all saw the number of homes applied for in Q3 more than double compared with the same period last year.

The surge comes as the government looks to build 1.5 million new homes by the next general election in 2029.

Geoff Keal, CEO at TerraQuest, which operates Planning Portal, said: “This is a clear statement of intent from housebuilders, taking to heart the government’s determination to drive housing delivery. The figures will also be welcome news beyond the housing sector, with new homes widely recognised as a cornerstone of the country’s future economic prosperity..

“What is less clear, however, is how these promising housing application figures will translate into delivery. We typically see some attrition along the way from application to delivery, whether through applications being refused, changes of plans on the part of developers, or economic changes rendering plans unviable.

“With the government’s recent commitment to get spades in the ground on the first three new towns before the next election, we can already see the focus turning to delivery, which is a promising sign.

“The industry now needs to come together, alongside government, and take the proactive steps necessary to get the country building.”

Download the Planning Application Index Q3 2025 here: https://www.terraquest.co.uk/news-and-insights/q3-planning-application-index-2025.

Dinny Shaw, Head of Planning at Places for People, said: “It is crucial that affordable housing is central to the delivery of new homes. Housing associations like Places for People are essential to meeting the government’s ambitious housing targets. While the financial capacity of housing associations is improving, planning departments must be resourced to match that momentum, otherwise, progress will continue to stall.

“Alongside immediate delivery, we need to also back a long-term strategy. Investment in new towns is an effective way of achieving scale and building new neighbourhoods around community and infrastructure-first principles. We welcome the government’s recent announcement of 12 strategic sites for new towns – a crucial step in delivering mixed-tenure housing and truly sustainable communities.”

Shane Aherne, at Edit Land, said: “There is no doubt that the Government’s reforms in the revised National Planning Policy Framework (NPPF) have created a notable shift in market confidence, with greybelt playing a central role in unlocking successful consents. While delivery challenges persist, the scale of proposals coming forward reflects a renewed ambition across the sector.

“The report highlights that PLCs are driving much of this momentum, which while essential for housing and large-scale infrastructure delivery, also underlines the need to streamline planning processes and reduce cost risk so SMEs can bring forward high-quality, locally driven schemes. Slow sale rates remain a concern for delivering these consents at the required pace, and may need to be addressed through a combination of SDLT restructuring and the reintroduction of Help to Buy to stimulate the market.

“These trends are shaping our outlook positively from a planning perspective, but more cautiously when it comes to delivery and sales. The growing scale of applications demonstrates long-term commitment, particularly from larger developers, and points to potential delivery at pace — though this may be constrained if slow sales rates persist. Within the industry, there is a strong sense of an 18-to-24-month window of opportunity to bring forward applications, alongside genuine concern that a change of government could add further uncertainty.”

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