TerraQuest finds latest industry trends highlight a strong resurgence in housing development, as Planning Portal data reveals that new home applications in England rose by nearly a third between April and June 2025 compared to the same period in 2024.

Our figures, published in the Q2 2025 Planning Portal Application Index show that 69,597 new homes were applied for in the second quarter of 2025. This represents a significant increase from 52,282 applications during the same quarter last year.

This upturn in planning activity will be welcomed by policymakers aiming to deliver 1.5 million new homes by the end of the current parliamentary term, as part of ongoing planning reform efforts.

The data covers approximately 95% of all planning applications submitted to local authorities in England, offering a reliable early indicator of market confidence. Encouragingly, seven out of eight regions recorded year-on-year growth in new home applications, with the West Midlands leading the way, reporting a substantial 71.7% increase compared to Q2 2024.

Geoff Keal, TerraQuest’s CEO comments:

“There are clear signs of sector recovery, with our data revealing a notable rise in planning activity, contrasting with some of the less positive trends reported further along the development cycle, such as in construction.

Because our data captures the very first step in the planning journey - often months before work begins on site - it provides a reliable early indicator of market sentiment. The recent uplift points to growing confidence among developers and housebuilders, likely driven by positive policy signals, including the revised National Planning Policy Framework (NPPF) and the Planning and Infrastructure Bill currently progressing through the House of Lords."

“While the figures don’t yet align with the government’s target of 1.5 million homes, they do show a clear uptick in the planning pipeline.  This growth signals renewed market intent, as the sector lays foundations for increased activity while planning reforms take time to bed in.”

What does the industry make of our data findings?

TerraQuest and Planning Portal have recently joined forces with Pure Property Finance to offer applicants fast, straightforward access to trusted property finance solutions. This strategic partnership is designed to streamline the development journey, helping users secure the right funding support for their project. Encouragingly, momentum in the property finance sector also appears to be building, as Tom Rowlands, Managing Director of Pure Property Finance, explains:

 “Whilst new homes are the government’s focus, we’ve seen more than double the enquiry volumes across homeowner products this year - particularly for conversions, extensions, and other improvement works. The shift began tentatively in Q1 and has picked up pace as inflationary pressures ease and interest rate expectations stabilise. 

“It’s encouraging, but not unexpected. Underlying demand for housing never disappeared, developers and homeowners alike were simply holding off amid uncertainty. What we’re seeing now is cautious re-engagement. There are green shoots, although delivery still lags behind. Construction costs remain a key friction point, and planning bottlenecks persist in some local authorities, especially those still grappling with post-COVID staffing challenges. 

“Interestingly, we’re seeing fewer delays around funding approvals, which is a positive change from this time last year. And there’s strong interest in commuter-belt projects, particularly where there’s a clear housing need and good transport links. 

“Second charge mortgage applications for home improvements have more than doubled year-on-year. For many, improving an existing property has become more cost-effective than moving, especially with high house prices and limited stock. A second charge loan allows homeowners to unlock equity without affecting their existing mortgage - and that’s proving a smart route for those looking to adapt their homes to suit lifestyle needs. 

“If current sentiment holds, we expect steady but measured growth over the next 6-12 months. Confidence is returning.” 

- Tom Rowlands, Managing Director, Pure Property Finance 

And it seems that sense of renewed growth is echoed across the sector. Mary-Jane O’Neill, Head of Planning (London & South) at Lambert Smith Hampton, offers her perspective from the frontlines of planning, regeneration, and infrastructure:

"We’re seeing an increase in planning and housing applications, especially in areas where Local Plans are under review or recently withdrawn. The December 2024 updates to the NPPF, including a softer housing delivery test and clearer support for brownfield development, have encouraged more speculative and strategic submissions. Developers also appear to be acting ahead of possible policy tightening in late 2025. 

There may also be pent-up demand following a subdued period post-COVID and earlier plan-making uncertainty. The revised NPPF’s more flexible approach to the five-year housing land supply has lowered risks for developers, making it more attractive to bring forward sites now. 

We’re noticing more pre-application engagement and design-led discussions, a positive sign of confidence. However, delivery remains patchy, with Build to Rent and strategic land sectors most responsive, particularly in urban extensions and regeneration areas with existing infrastructure. 

Persistent challenges include delays in signing S106 agreements, nutrient and water neutrality requirements causing local delays, capacity issues within planning authorities slowing determinations, and infrastructure funding gaps limiting readiness. 

While some issues like nutrient neutrality delays are easing due to new mitigation strategies, new challenges have arisen from mandatory biodiversity net gain requirements and the Building Safety Act/Gateway process — both positive in principle but currently adding uncertainty, longer programmes, and increased costs.”  

- Mary-Jane O’Neill, Head of Planning Consultancy (London & South), Planning, Regeneration + Infrastructure, Lambert Smith Hampton

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