"Today's approvals are not tomorrow's completions": HTB comments on latest planning approvals data

18 September 2025

Neil Leitch, Managing Director of Development Finance, Hampshire Trust Bank

“The new Housing Secretary Steve Reed last week called on the industry to ‘build baby build’, but even with this reported rise the planning system remains a major hurdle. Recent data from the Home Builders Federation showed approvals are at their lowest level in 13 years, which makes the Government’s pledge to deliver a million homes this Parliament look increasingly unrealistic. Developers want to build, and lenders are ready to support them, but the delivery chain is simply not strong enough to turn ambition into delivery.

"The upcoming Budget is an opportunity to give housebuilding a genuine boost, not only by providing planning departments with greater resources but by attracting more skilled people into planning roles. Without that investment, the system will remain too slow and inconsistent to support the homes we need.

"We also need to be clear that today’s approvals are not tomorrow’s completions. Too many schemes stall between consent and delivery, and if that pipeline continues to thin out, the shortfall in housing output will only grow. Planning is not the only barrier developers face, but it is the one that unlocks everything else. For SME developers in particular, long delays and uncertainty can make schemes unviable before they even start.”