Planning approvals for new homes have fallen to a decade low, according to a new report from the Home Builders Federation.

The organisation’s latest Housing Pipeline Report, which covers the 12 months to June 2024, found that just over 230,000 units were granted planning permission.

In the late 2010s, when housing supply was at its peak of around 240,000 homes a year, the number of units being approved in a 12-month period was consistently around 100,000 higher.

The data, supplied by Glenigan, also showed 10,400 sites were approved in the year, a 10% drop on the same period the previous year, the lowest figure for any 12-month period since the report began in 2006.

The drop in approvals was more severe in certain regions. In London, units approved dropped 20% on the previous quarter and by 42% compared to the same quarter last year. 

The North East and East Midlands also saw significant drops compared to the same period last year - 50% and 42% respectively.

The HBF said the report demonstrated the scale of the challenge faced by the new government, claiming that planning approvals would need to increase by 55% in order to meet the new annual target of 370,000 new homes.

Neil Jefferson, chief executive at HBF, said: “The steep fall in planning permissions starkly illustrates the challenge the new Government faces to boost housing supply. Whilst the speedy interventions on planning are very welcome, there are a number of determinants on housing supply levels.

“The lack of affordable mortgage availability means more support for buyers is needed. Creating demand for new homes provides the confidence the industry needs to invest and deliver both private and affordable homes.

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“Building the homes we need will generate hundreds of thousands of jobs, create investment in communities and economies in every region and deliver the growth the country desperately needs.

“The upcoming budget provides an opportunity for the Government to take more positive steps to address the mounting housing crisis and to commit to their pledge to get Britain building again.”