The current National Planning Policy Framework has an ambitious target to build 300,000 extra homes every year in England. To achieve this though, it estimates 370,000 homes need to get planning permission annually. Unfortunately, the latest figures show approvals have sunk to the lowest point for over a decade. It’s got alarms ringing about the future housing pipeline. Let’s have a look, then you can rely on us if you want to work with a top architect in London.

New data

The latest report by the Home Builders Federation, using figures from construction market intelligence experts Glenigan, is hard reading. It shows a slump in approvals across the board in Q2 2026, both large developments and private homes.

Most alarmingly, just over 45,300 homes got permission in the second quarter. This is the lowest total in England since 2012. Looking at the whole year to that point, 214,500 homes were approved. It’s the lowest total since 2013 and a massive 36% below 2017′s peak. So, it’s not close to the NPPF’s goals.

It’s been a tough time for larger projects (developments with 10+ homes). Approvals are down 21% on Q1 and 14% on the same quarter in 2025. Private home approvals are struggling too, falling 15% year on year. Speak to us if you want help from a creative architect in London, especially if you’re struggling or want help getting permission.

Why is it happening?

HBF’s report explores a number of issues with the current housing market. Most significantly, they say demand is actually quite weak at the moment. Buyers are very cautious because of the geopolitical situation. In addition, interest rates and stamp duty make it more expensive to buy.

The viability of projects also remains an issue. This includes key things like higher construction costs, taxes/levies, and additional building and fire safety requirements. It puts pressure on developers and private housebuilders.

What needs to change?

This is a worrying situation for various stakeholders, especially if approvals continue to sink or remain low for a long period. As a top architect in London, we understand how big the impact can be. Low planning approvals can squeeze the pipeline and actually lead to issues like increasing house prices.

There are calls for change to improve the situation. This includes freezes on taxes and levies on construction. More Government support, especially for first time buyers is necessary too. Plus, mortgages need to become more affordable.

Work is also underway to reform leasehold tenures. They are currently the default for flats, but the strain of additional costs and fees like service charges causes problems. There are plans to replace this with fairer commonhold tenure. The hope is it could help to address the housing slowdown in areas that rely on flatted development, particularly London.

Discuss your plans with a fantastic architect in London

Getting approval for projects is one of the biggest challenges, but we’d love to share our expertise with you. You can rely on us to offer fantastic support and advice. Crucially, we can help you to consider local planning requirements and key policies like fire safety.

So, speak to us and work with an experienced architect in London. We’d love to see your plans and help bring them to life.