The latest Home Builders Federation (HBF) Housing Pipeline report has understandably grabbed headlines with some stark revelations. At 45,075, the number of units approved was 34% down on the third quarter of 2024 and the lowest quarterly total since 2012 Q2. At 146,798, the overall number of units approved during the first nine months of 2025 was 25% lower than a year ago. At 1,452, the number of housing projects granted planning permission in the third quarter dropped by 17% against the preceding quarter and was 45% lower than a year ago.
But amid the apparent downturn lies a compelling narrative about opportunity and a catalyst for positive change that can unlock long-term growth across the UK.
Firstly, it’s important to recognise that the historic lows in planning approvals and the successive quarterly falls in the number of approved housing projects reflect developers’ well-placed caution in the face of broader economic headwinds. But, as significant as they are, they are not a permanent state of affairs but rather a snapshot in time that highlights where policy, industry and investment need to align more closely to accelerate delivery.
As such the report brings a clear diagnosis of the barriers to delivery from planning system delays, financing uncertainty and viability challenges through to labour and materials cost pressures. With understanding then comes action. Policymakers are now better equipped to address these challenges and drive meaningful reforms that will improve confidence and unlock development prospects.
Initiatives are already underway and include planning reforms, changes to biodiversity net-gain requirements, and proposals to improve land release and delegated decision-making.
Another positive observation is the regional variation in approvals. While some areas saw reductions, others, including parts of the North East, West Midlands and East of England, experienced significant increases in planning approvals during the same period. These regional success stories show that where the right conditions exist — proactive local planning, collaborative councils and developer confidence.
Perhaps most importantly, the report has highlighted the plight of small and medium-sized homebuilders, who often perform a key role in building innovatively and understanding the geography and locality of their projects. If policy and finance frameworks can be aligned to support smaller builders, they could substantially increase the number of homes delivered each year bringing much needed diversity of tenure, design and location to local markets.
Lastly, the report's visibility is a good thing in and of itself. It stimulates discussion on how to solve structural issues. The current decline in approvals may be the catalyst for a change in the way homes are delivered in the UK, as planning reform is currently a top priority on the national agenda and there is growing agreement that housing delivery is essential to social mobility and economic opportunity.
While the HBF report highlights significant challenges, it also provides a roadmap for the direction the industry and policymakers need to take that is based in empirical evidence. It shines a light on where targeted action can generate the most impact, and, critically, how collaboration across sectors can turn the tide on housing supply for the benefit of buyers, builders and communities alike.
