Planning applications for new homes increase by two-thirds in a year
Planning applications for new homes increase by two-thirds in a year
A new report from TerraQuest, the tech company behind Planning Portal, indicates growth for the early stages of national housing development. Planning Portal’s planning application data finds 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.
The latest Planning Application Index from TerraQuest, launches at the National Planning Conference as developers, local councils and industry peers gather to discuss the future of planning, land and development. The report provides a foundation for vital cross-sector discussion on how to deliver housing, in line with the government’s target of 1.5 million new homes by the end of its current term.
The report also notes that affordable housing saw a significant boost in Q3 2025, with Planning Portal recording the highest number of applications for this tenure since 2020. In fact, affordable housing units during this period were equivalent to 43% of market housing applications.
Planning Portal data covers around 95% of all planning applications submitted to local planning authorities across England, providing a unique and reliable early indicator of market trends.
The number of housing units applied for through new home planning applications is the highest for a single quarter in almost four years, with levels not seen since Q4 2021 - the last time applications exceeded the current figure. The robust growth in Q3 shows a 50% increase against application numbers at the same point last year.
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“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.”
Whilst there are several factors at play to see this indication of market intent into projects breaking ground, Geoff Keal looks to the government’s new towns initiative to help build the momentum for the required housing delivery.
“What is less clear, however, is how these promising housing application figures will translate into delivery. We typically see a high rate of 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.”
What is the sector saying about the latest planning application findings?
Planning Portal and TerraQuest work closely with key stakeholders across industry, collaborating to understand the challenges of the sector. This combined perspective provides an invaluable unboxing of how the industry is responding to the changing landscape of housing delivery.
Dinny Shaw, Head of Planning at People for Places, said: “It is crucial that affordable housing is central to the delivery of new homes. Housing associations 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, Director 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 grey belt 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.”
