Quarter 1, 2025 Report

The number of residential units approved fell by 45% during the first quarter of 2025, in sharp contrast to the rise in approvals during the second half of last year. At 43,893, the number of units approved was 32% down on the first quarter of 2024 and the lowest quarterly total since 2012 Q2.

At 2,243, the number of housing projects granted planning permission in the first quarter dropped by 19% against the preceding quarter and was 24% lower than a year ago.

Housing schemes of ten or more units during the first quarter accounted for 89% of approved units. At 38,955, the number of units on such schemes fell 48% against the preceding quarter and was 33% lower than a year earlier. The remaining 11% 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 1,436 the number of private sector housing projects (schemes of 3 or more units) securing approval was 19% lower than in the fourth quarter and was 25% down on a year earlier. At 38,583 the number of units on private sector projects granted planning permission was 46% down on the previous three months and 32% lower than a year earlier. The fall was led by a decline in the number of approvals on larger sites of 126 units or more.

At 71, the number of social housing projects (of three or more units) fell by 44% during the first quarter and was 49% lower than a year ago. At 4,530, the number of units was 43% lower than during the preceding quarter and 38% down on a year earlier.

Regionally, all parts of the Great Briain suffered double digit declines in the number of units approved during the first quarter. The number of units approved more than halved in Wales and London with the approvals dropping by 58% and 59% respectively against the preceding three months. There were also strong declines in unit approvals in the North West (-43%), Yorkshire & the Humber (-44%), East Midlands (-48%), and the South East (-46%). The North East, West Midlands, South West and Scotland saw declines in unit approvals of 33%, 34%, 39% and 37% respectively against the fourth quarter of 2024.