Housebuilding could hit decade low in 2024 - warning

The supply of new homes could reach the lowest level since 2014, builders have warned.

It comes as the Government is due to publish its much-anticipated National Planning Policy Framework this week, setting out official plans to build more homes across the country.

The latest Housing Pipeline report from the Home Builders Federation (HBF), highlights that the number of planning permissions being granted for new homes continued to decline in the third quarter of the year – falling to another record low.

The number of sites granted planning permission in the past 12-months in England was the lowest quarterly figure recorded since the Housing Pipeline Report began in 2006

The report found that 2,447 projects were granted planning permission, down 3% on the previous quarter and 19% lower than the same period last year

At 50,316, the number of housing units granted permission in England during the third quarter of 2023 was down 12% on the previous quarter and 28% lower than the same period of 2022

In the year to September 2023, the number of units gaining permission was 245,872 – a 15% drop on the previous year and the lowest for a 12-month period since the third quarter of 2015.

If the 15% drop in approved units translates into completions as we move into 2024, the HBF warns, housing supply could drop to fewer than 200,000 per year - the lowest since 2014.
It comes as promised mandatory housebuilding targets were excluded from the Government’s levelling up legislation.

Stewart Baseley, executive chairman at the HBF, said: “This is the inevitable outcome of several years of anti-growth policy and rhetoric. Businesses have warned for some time that the impact of Government action would be severe but now there is now a mounting body of evidence.  

“If ministers continue with the proposals to rid the planning system of targets and consequences, no matter how it is packaged, it will result in fewer new homes and represents another victory for NIMBY backbenchers.

“Removing the requirement for local housing needs assessments and allowing councils to plan for as few homes as they wish will see housebuilding in some areas collapse with investment in jobs and communities all suffering.

“Putting politics and party management above the interests of those households struggling amidst a worsening housing crisis may seem attractive in the short-term but the long-term consequences for the economy and society are horrendous.”