The UK’s housing market is experiencing renewed optimism in 2025, as a significant rise in planning applications for new homes suggests a promising future for new build developments.
According to the Planning Portal Application Index for Q2 2025, applications for new residential projects in England surged by nearly a third compared to Q2 2024, with 69,597 new homes proposed, up from 52,282 in the same period.
Geoff Keal, CEO at TerraQuest, the operator of Planning Portal, said that the recent uplift points to “growing confidence among developers and housebuilders, likely driven by positive policy signals, including the revised National Planning Policy Framework (NPPF) and the Planning and Infrastructure Bill currently progressing through the House of Lords.”
The government’s commitment to streamlining planning processes is a key driver of this momentum. The Planning and Infrastructure Bill, introduced in March 2025, aims to halve approval times for major projects, empowering planning officers and development corporations to deliver housing at scale.
The Office for Budget Responsibility (OBR) forecasts a 0.4% GDP boost for these reforms, potentially generating £3.4 billion for public services through increased housebuilding. This economic optimism is fuelling a promising pipeline of projects, from urban regeneration to new communities along corridors like Oxford-Cambridge.
Innovative tools are further accelerating this progress. The government’s “Extract” AI tool, developed in collaboration with Google DeepMind and announced in June 2025, is digitising planning documents, reducing processing times from hours to minutes. Piloted in councils like Hillingdon, it’s set to roll out nationwide by Spring 2026, ensuring faster approvals and much smoother project timelines.
This technological advancement bolsters the government’s ambitious goal of 1.5 million new homes and is a further step in supporting a thriving landscape for developers.
The rise in planning applications also reflects a shift in policy with the “grey belt” initiative unlocking less sensitive land for development. Data from the Planning Portal shows a 49% increase in permission requests for new homes outside London in the first half of 2025, totalling 132,000 additional homes after demolitions.
This surge signals a robust demand for new builds, offering companies in the sector opportunities to collaborate on projects that address the UK’s housing needs while delivering modern, sustainable homes.
This wave of activity is revitalizing the housebuilding sector, with developers seizing opportunities to create vibrant communities that blend affordability with quality design.
The revised NPPF, updated in December 2024, emphasizes sustainable development, encouraging energy-efficient homes and biodiversity enhancements. These priorities align with public demand for greener living spaces, further boosting the appeal of new build homes.
While challenges like local infrastructure demands exist, the government’s £39 billion investment in social housing and the creation of a £16 billion National Housing Bank demonstrate a commitment to overcoming obstacles.
These initiatives ensure that the construction sector, including firms supporting new build developers, can operate with confidence. The focus on sustainable growth and faster decision-making creates a stable foundation for long-term success.
The UK housebuilding sector is entering an exciting new phase in 2025. The surge in planning applications, supported by innovative policies and technological advancements, points to a vibrant market poised for growth.
These developments offer a unique opportunity to shape the future of UK housing, delivering high-quality homes and thriving communities. The renewed optimism in new builds is more than a passing trend, it’s a solid foundation for progress.
