Weekly planning news

Housebuilding applications surge to five-year high, new data shows 

Housebuilding applications covering 412,130 proposed homes were submitted across England in the 12 months to the end of June 2026, according to new data from Planning Portal¹. 

According to The Times², this was almost 100,000 more homes than during the previous 12 months, representing an increase of around 30% and taking the number of homes proposed to a five-year high. 

The first half of 2026 also recorded applications covering 189,520 homes, making it the strongest opening half of any year since the beginning of the decade. 

The figures point to strong developer intent at the planning stage, but this has not yet been matched by the number of homes starting construction. The latest Office for National Statistics figures³ estimate that 124,860 new-build homes were started in England during 2025.  

Geoff Keal, CEO of TerraQuest and Planning Portal, commented on the continuing gap between housing plans and delivery. He said: “The gap between developer intent and on-the-ground delivery is continuing to grow. It creates a risk that applications will simply add to the ‘missing city’ of hundreds of thousands of new homes that have been applied for but never built. 

“Nevertheless, the signal of intent continues to be robust, which suggests developers are increasingly optimistic that they can progress projects through to starts and completions. We shall see over the coming months whether that confidence is well founded.” 

Regional figures showed year-on-year growth in the number of homes included in applications across every region except London. Applications in the capital covered around 55,000 homes, representing a 29% decline over the year, although the latest quarterly figures showed signs of improvement, rising by 18% compared with the same period in 2025. 

Applications for social and affordable housing also remained strong. Although the number fell between Q1 and Q2, the 5,053 applications recorded in Q2 made it the strongest second quarter for this type of housing since the beginning of the decade. 

You can read the full report here.⁴

Water scarcity emerges as new barrier to government's housebuilding targets 

A report from the Guardian⁵ this week highlights a growing obstacle to the government's pledge to deliver 1.5 million new homes by the end of this parliament: there simply isn't enough water in large parts of England to support the scale of development being demanded. 

The piece details how councils across Hampshire, Kent, Hertfordshire, Essex and Cambridgeshire are being asked to significantly increase housing delivery even as drought conditions, chalk stream depletion and ageing water infrastructure push local supply networks toward their limits.  

In Basingstoke, the annual housing target has risen from 830 to 1,150 homes, while East Hampshire's requirement has nearly doubled - yet local plans in both areas remain stalled because water companies and environmental regulators cannot confirm supply is sufficient. Basingstoke and Deane council leader Paul Harvey noted, saying: "We cannot magic up more water." 

Until housing targets and infrastructure investment cycles are set on the same clock, this gap between what's planned and what's deliverable is likely to keep resurfacing in other water-stressed catchments, not just the ones currently in the headlines. 

This mirrors a broader pattern we are tracking through our Planning Application Index: the gap between housing plans and the number of homes actually being built, which is not always driven by land viability alone. 

Water supply, grid capacity, schools and GP provision are becoming as significant as land availability in determining where new housing can realistically be delivered. 

Read the full Guardian investigation here⁶  

New-build developments fall to lowest level in over a decade 

The number of new-build developments coming to market has fallen to its lowest level in more than a decade, according to property platform Rightmove. 

City AM⁷ reported that the number of developments was 6% lower than during the same period last year, with slower building rates continuing to affect the supply of new homes. 

Johan Svanstrom, Chief Executive of Rightmove, said housebuilders were facing some of the most difficult conditions experienced since the global financial crisis. 

According to the report, rising construction costs, higher mortgage rates and affordability pressures have continued to affect buyer demand and the viability of new housing developments. 

Taylor Wimpey has also reduced its expected completion range for the year from between 10,600 and 11,000 homes to between 10,600 and 10,800, following lower-than-expected sales during the first half of 2026. 

Its private sales rate fell from 0.59 to 0.55 homes per outlet each week compared with the previous year, providing a further indication of the weaker demand facing the new-build market. 

The housebuilder said the housing market downturn had lasted longer than anticipated and announced plans to reduce its shareholder dividend as it focuses on generating cash and protecting its margins. 

Taylor Wimpey called for targeted measures to support buyer demand and improve development viability. It warned that weaker demand, rising costs and limited affordable housing funding could reduce housing delivery and wider economic growth. 

1. https://www.terraquest.co.uk/news-and-insights/q2-planning-application-index-2026
2. https://www.thetimes.com/life-style/property-home/article/housebuilding-applications-surge-to-five-year-high-hrc0kj0kl?
3. https://www.gov.uk/government/statistics/housing-supply-indicators-of-new-supply-england-october-to-december-2025/housing-supply-indicators-of-new-supply-england-october-to-december-2025
4. https://www.terraquest.co.uk/news-and-insights/q2-planning-application-index-2026
5. https://www.theguardian.com/environment/2026/aug/02/we-cannot-magic-up-more-water-the-supply-problems-putting-housing-targets-in-england-at-risk
6. https://www.theguardian.com/environment/2026/aug/02/we-cannot-magic-up-more-water-the-supply-problems-putting-housing-targets-in-england-at-risk
7. https://www.cityam.com/rightmove-housebuilders-face-worst-conditions-since-financial-crisis/?