Planning approvals for new residential properties in England fell by a fifth in the latest quarter, reaching their lowest level since 2012, according to industry figures.
A total of 45,315 homes received planning permission in the second quarter of the year, according to data cited by the Home Builders Federation (HBF).
The figures also show that 214,515 homes were granted planning permission in the year to the end of the second quarter. That was the lowest annual total since 2013, down 8% on the previous year and 36% below levels recorded in 2017.
The HBF said the figures highlighted growing pressure on the housing pipeline and backed the government’s plans to introduce a new scheme aimed at helping first-time buyers and supporting housebuilding.
Neil Jefferson, chief executive of the HBF, said the figures showed the supply of new homes was being “squeezed to historically low levels”.
He said higher taxes, rising construction costs and additional policy requirements were making more potential development sites financially unviable. He also pointed to weaker demand, limited government support for first-time buyers and a lack of affordable mortgage lending.
Jefferson welcomed the government’s announcement of the new first-time buyer scheme, saying the organisation looked forward to working with ministers to ensure it was accessible to potential buyers and housebuilders.
The Your First Home scheme, announced ahead of Labour’s annual conference, is intended to help people buy their first property with a deposit of as little as 2.5%.
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