The Housing Pipeline Report Q2 2025 found the number of residential units approved fell by 6% during the second quarter of 2025, extending the decline seen during the first three months of the year. At 48,022, the number of units approved was 23% down on the second quarter of 2024 and the lowest quarterly total since 2012 Q2.
At 1,559, the number of housing projects granted planning permission in the second quarter dropped by 33% against the preceding quarter and was 45% lower than a year ago.
Housing schemes of ten or more units during the first quarter accounted for 92% of approved units. At 44,289, the number of units on such schemes slipped 3% against the preceding quarter and was 22% lower than a year earlier. The remaining 8% of units were on smaller new build projects of up to nine units including self-build schemes, together with homes included within non-residential projects and from the conversion of non-residential properties.
At 1,112 the number of private sector housing projects (schemes of 3 or more units) securing approval was 25% lower than in the first quarter and was 39% down on a year earlier. At 44,313 the number of units on private sector projects granted planning permission was 2% down on the previous three months and 20% lower than a year earlier. The fall was led by a decline in the number of approvals on smaller site sites of 250 or fewer units during the quarter. Approvals on large sites increased during the quarter, after a weak start to the year.
At 59, the number of social housing projects (of three or more units) fell by 21% during the second quarter and was 31% lower than a year ago. At 3,242, the number of units was 30% lower than during the preceding quarter and 45% down on a year earlier.
Approvals improved in some parts of the country after the widespread declines seen during the first quarter. The North West, Yorkshire & the Humber, East Midlands and South East saw a rise in the number of units approved during the second quarter, rising by 11%, 42% 2% and 12% respectively against the preceding quarter. The number of units approved weaken in all other parts of the country. The sharpest declines were in the North East, West Midlands, South West, Wales and Scotland, with approvals falling by 27%, 52%, 17%, 29% and 29% respectively against the first quarter.
