2026 Home Building Slump Continues
The number of residential units approved has dropped an enormous 18% during the second quarter of 2026 and is 8% lower than just one a year ago.
This is according to The Housing Pipeline Report from the House Builders Federation which found that only 51,503 units were approved in Q2 2026.
If that trend continued, it would see circa 200,000 units built each year which is a massive 100,0000 short of the Labour Party’s pre-election promise to build 1.5 million homes the Parliament…and at 300,000 units a year to meet that promise, homes would have to have been at building stage the day Sir Kier Starmer walked into number 10.
Better news
The number of units approved during the first six months of 2026 was 2% up on the first half of 2025. Also, at 3,173, the number of housing projects granted planning permission in the second quarter fell by 9% against the preceding quarter but was 1% higher than a year ago.
Housing schemes of 10 or more units during the second quarter accounted for 88% of approved units. At 45,194, the number of units on such schemes declined by 19% against the preceding quarter and was 10% lower than a year earlier.
The remaining 12% 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.
Private housing
At 1,278 the number of private sector housing projects (schemes of 3 or more units) securing approval was 13% lower than in the first quarter and was 14% down on a year earlier. At 44,927 the number of units on private sector projects granted planning permission was 17% down on the previous three months and 10% down on a year earlier.
Social housing
At 101, the number of social housing projects (of three or more units) rose by 1% during the second quarter and was 20% up on a year ago. However, at 4,274, the number of units was 33% down on the preceding quarter and was 5% lower than a year earlier.
Regional performance
There was a marked strengthening in approvals in the East and West Midlands, North-East, Scotland and Wales during the second quarter with the number of units approved 36%, 23%, 141%, 16% and 132% up respectively on a year earlier.
In contrast unit approvals were lower in other regions, with the steepest declines on a year ago being falls of 33%, 36%, 30% and 39% in the North-West, Yorkshire & the Humber, London and the South-East respectively.
Picture: Download (free and with no sign-up) The Housing Pipeline Report Q2 2026 on the link below.
The Housing Pipeline Report, from the House Builders Federation, has found that only 51,503 homes were approved in Q2 2026
