Planning Portal figures show that, in England, the number of applications in April-June for new homes has jumped by a third from the same period last year
TerraQuest, the operator of the Planning Portal, has released the data, with Q2 2025 seeing 69,597 new home applications made, up from 52,282 this time last year.
Furthermore, of the eight English regions, seven saw more new homes applied for than in the same period last year. The West Midlands led the growth with a strong 71.7%.
Finally breaking a downward trend
Since 2023 and until now, new home applications have been on the decline due to low confidence among developers. This shows that confidence is increasing, an important note during the quarter in which a new financial year begins.
There were, however, more new home applications in Q1 2025, with Q2 seeing 2,216 fewer applications, meaning the improvement is currently solely on a year-by-year basis.
Mary-Jane O’Neill, head of planning consultancy (London & South), planning, regeneration + infrastructure, Lambert Smith Hampton, said: “Whilst new homes are the government’s focus, we’ve seen more than double the enquiry volumes across homeowner products this year – particularly for conversions, extensions, and other improvement works. The shift began tentatively in Q1 and has picked up pace as inflationary pressures ease and interest rate expectations stabilise.
“It’s encouraging, but not unexpected. Underlying demand for housing never disappeared, developers and homeowners alike were simply holding off amid uncertainty. What we’re seeing now is cautious re-engagement. There are green shoots, although delivery still lags behind. Construction costs remain a key friction point, and planning bottlenecks persist in some local authorities, especially those still grappling with post-COVID staffing challenges.
“Interestingly, we’re seeing fewer delays around funding approvals, which is a positive change from this time last year. And there’s strong interest in commuter-belt projects, particularly where there’s a clear housing need and good transport links.
“Second charge mortgage applications for home improvements have more than doubled year-on-year. For many, improving an existing property has become more cost-effective than moving, especially with high house prices and limited stock. A second charge loan allows homeowners to unlock equity without affecting their existing mortgage – and that’s proving a smart route for those looking to adapt their homes to suit lifestyle needs.
“If current sentiment holds, we expect steady but measured growth over the next 6–12 months. Confidence is returning.”
A general decline in applications in Q4 2024
In March, data from the Ministry of Housing, Communities & Local Government showed that Q4 2024 saw a drop of 7% in planning applications from Q4 2023.
By sector, residential applications were down by 10% (7,400), commercial developments were down by 13% (1,500), and householder development application decisions were down by 7% (37,800).
At the time of the data being published, Brian Berry, chief executive of the Federation of Master Builders, said: “It is deeply disappointing to see the number of planning applications granted for developments of 9 or fewer units in 2024 was down significantly on the previous year, by almost 2,000. This means a mere 9% of homes delivered will be from the nation’s small local house builders – an increasingly dwindling part of the sector. The Housing Minister has been clear about the need to diversify the housing market away from a reliance on a small number of high-volume builders, yet today’s figures show more needs to be done.
“What sets small, local builders apart is that they come from the very communities they build for, delivering high-quality projects using local skills. But we know from the FMB’s House Builders’ Survey in December 2024 that the planning system is the number one barrier preventing SME builders from building. We need to see more resources allocated to local authority planning departments, dedicated to helping SME builders navigate the challenges of the planning system, and allowing them to deliver the homes we need.”
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