Planning Permissions Fall to Record Low: What This Means for the Industry
Planning permission approvals for new housing developments in England have fallen to their lowest levels since records began in 1979, sparking widespread concern across the construction and energy assessment sectors.
According to the Home Builders Federation’s (HBF) New Housing Pipeline Report, just over 30,000 housing projects were granted permission in 2024—a figure that marks a further decline from 2023 and the lowest number recorded in over four decades. Although there was a modest 4% uptick in approvals during Q4 2024 compared to Q3, the overall year-on-year figure still represents a significant 10% reduction.
What Is Planning Permission?
Planning permission is formal approval from a local authority that’s required before certain types of building work or changes to land use can go ahead. In England and Wales, permission is typically needed for new builds, major alterations to existing buildings, and for changes in how land or buildings are used.
Applications are assessed based on local development plans and national planning policies, taking into account factors such as environmental impact, design, access, and infrastructure.
Without planning permission, work may be considered unlawful and could be subject to enforcement action. Click below to read more about what is involved.
FIND OUT MOREWhy Does This Matter?
This slump in approvals has a direct impact on professionals across the built environment, particularly those working in energy assessment. For Elmhurst members, including OCDEAs and Airtightness testers, fewer housing developments translate into fewer opportunities for new build energy assessments and EPC lodgements.
This trend is already being reflected in the data that Elmhurst receives. The number of New Build EPCs lodged in England, Wales, and Northern Ireland for January and February 2025 was 30,180, down from 40,889 in the same period of 2024—a clear 26% drop. (Note: Scottish EPC data is currently not published.)
What’s Behind the Decline?
The fall in planning approvals can be attributed to a combination of complex and interconnected issues:
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Higher interest rates have reduced mortgage demand.
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Rising construction and material costs continue to put pressure on developers.
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Under-resourced local planning authorities struggle to process applications efficiently.
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Other legislative and systemic barriers that hamper new housing projects.
Despite the Labour Party’s manifesto pledge to “reform our planning rules to build the 1.5 million homes we need” and develop a new 10-year infrastructure strategy, the impact of this ambition has yet to be reflected in current planning approval statistics.
A Glimmer of Hope?
There may be light at the end of the tunnel. The UK Government recently announced the forthcoming Planning and Infrastructure Bill, which aims to
streamline planning processes for major infrastructure projects, and prioritise “ready-to-go” energy projects in the grid connection queue, addressing long-standing bottlenecks in the system.
Jason Hewins, New Build Residential Manager at Elmhurst Energy, commented:
“Reform to the planning process is needed urgently in order to stimulate a revival in the construction of new homes. The figures from the HBF report come as no surprise to those of us already witnessing a dip in new build EPC lodgements. However, we remain cautiously optimistic. The government appears committed to addressing the challenges, and we hope to see the effects of these initiatives come to fruition in the coming months.”
Useful Links
https://www.hbf.co.uk/policy/policy-and-wider-work-program/new-housing-pipeline/
https://www.hbf.co.uk/news/housing-pipeline-report-q4-2024-published-march-2025/
https://www.gov.uk/government/publications/the-planning-and-infrastructure-bill/guide-to-the-planning-and-infrastructure-bill