The number of new homes receiving planning permission in England fell sharply in the second quarter of 2026, according to the latest Housing Pipeline report from the Home Builders Federation (HBF).

Just 45,315 homes secured permission during the quarter, down 21% and the lowest total since 2012. Over the 12 months to June 2026, permission was granted for 214,515 homes, 8% fewer than a year earlier and 36% below the 2017 peak.

Neil Jefferson, Chief Executive at HBF, said: “These figures show a housing pipeline being squeezed to historically low levels, with too few planning permissions coming forward to meet the country’s housing needs.”

Approvals on larger sites of more than ten homes fell 21% quarter-on-quarter to 39,689, while private housing approvals were down 19%. Just 1,234 projects of three or more homes were approved, the lowest quarterly figure on record.

Fergus Charlton, Planning Partner at Michelmores, said: “The changes to the planning system over the last two years, culminating in the new National Planning Policy Framework (NPPF) and the prescriptive use of delegated decision making, have been welcomed by the development industry. But there remains a risk permission will be refused.

“Applications to take advantage of the changes will only start flowing when housing demand picks up. The Your First Home initiative will go some way to stimulating that demand.”

The annual number of homes approved now represents 58% of the 370,000 permissions a year identified in the NPPF as necessary to support delivery of 300,000 additional homes annually.

The HBP stated that weak demand, restricted access to affordable mortgage finance and rising construction and policy costs are the key issues weighing on development viability.