New Home Planning Permissions Fall 17% England Lowest Since 2012

Planning permission for new homes in England has fallen sharply, reaching the lowest levels since 2012, with just 44,520 homes approved in the second quarter of 2025, marking a 17% drop year-on-year. The Home Builders Federation (HBF) reports a continued decline in new housing site approvals, with only 1,410 sites granted permission between April and June 2025, the 10th consecutive quarter of decline, and the lowest rolling annual rate of 8,200 sites since data collection began. This downturn presents a significant challenge to the new housing secretary, Steve Reed, who must address the gap between current approval rates and the government's target of 1.5 million homes by 2029, as current permissions are only 60% of the annual target needed. Rising regulatory costs, taxes, and delays in processing planning applications are cited as key factors limiting viability for builders, particularly smaller ones, while a lack of affordable mortgage lending is suppressing demand. In Australia, building permits fell sharply by 8.2% in July, reversing the previous month's increase and signaling a slowdown in the construction sector, though market impact is expected to be short-term and sentiment-driven. Overall, the housing market faces significant pressures both in England and Australia, affecting construction activity and investment in new homes.