Quarter 1, 2025 Report

The number of residential units approved fell by 37% during the first quarter of 2025, in sharp contrast to the rise in approvals during the second half of last year. At 50,610 the number of units approved was 32% down on the first quarter of 2024 and the lowest quarterly total since 2012 Q2.

At 2,306, the number of housing projects granted planning permission in the first quarter dropped by 17% against the preceding quarter and was 22% lower than a year ago.

Housing schemes of ten or more units during the first quarter accounted for 90% of approved units. At 38,955, the number of units on such schemes fell 39% against the preceding quarter and was 22% lower than a year earlier. The remaining 10% 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 1,481 the number of private sector housing projects (schemes of 3 or more units) securing approval was 17% lower than in the fourth quarter and was 23% down on a year earlier. At 45,154 the number of units on private sector projects granted planning permission was 37% 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 larger sites of 126 units or more.

At 74, the number of social housing projects (of three or more units) fell by 41% during the first quarter and was 46% lower than a year ago. At 4,616, the number of units was 42% lower than during the preceding quarter and 36% down on a year earlier.

Regionally, all parts of Great Britain 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 54% and 57% respectively against the preceding three months. There were also strong declines in unit approvals in the North West (-40%), Yorkshire & the Humber (-44%) and East Midlands (-47%). The North East, West Midlands, South West and Scotland saw declines in unit approvals of 40%, 325%, 34% and 32% respectively against the fourth quarter of 2024.