Steve Reed Unveils Building Acceleration Plan After Sharp Fall in Housing Permissions

Britain’s housing crisis has once again taken centre stage, as the latest planning application statistics expose a worrying slowdown in permissions while Ministers promise the most ambitious housebuilding drive in the nation’s history.

Figures released today by the Department for Levelling Up, Housing and Communities (DLUHC) show that English planning authorities received just 80,400 planning applications between April and June 2025, a 5% drop on the same period last year. Housing approvals are also down, with the rolling annual total of dwellings permitted falling to ~221,000, a 7% decrease compared to 2024.

Residential approvals slipped 8% in the quarter, while commercial development also contracted by 7%.

In short, the pipeline is narrowing at precisely the moment the country most needs to accelerate supply.

Housing Secretary Steve Reed reacted with a blunt warning that the figures were “unacceptable” and pledged urgent reform. Reed confirmed he will introduce a comprehensive Building Acceleration Package, designed to speed up delivery and put Britain on track for 1.5 million new homes this Parliament.

“This will be the biggest era of housebuilding in our country’s history,” Reed said, “ensuring families across Britain have the key to home ownership in their hands.”

The Government insists it will go “further and faster” to address the housing shortage, seeking to unlock stalled permissions, boost local authority capacity, and encourage private sector participation.

While London held steady, with no drop in applications received and a slight uptick in decisions made (+4%), other regions struggled. The West Midlands saw applications slide by 10%, Yorkshire and the Humber by 9%, highlighting the uneven geography of England’s planning slowdown.

Approval rates overall have risen slightly to 88%, suggesting councils remain willing to permit schemes, but fewer projects are reaching the submission stage.

For the construction sector, the dual message is clear:

Pipeline risk: Declining approvals signal fewer projects in the medium term, with knock-on effects for contractors, consultants, and suppliers.

Policy opportunity: If the Building Acceleration Package is enacted swiftly, developers could see faster routes through the system and greater certainty in delivery.

London outlook: The capital appears more resilient than other regions, but housebuilders will watch closely to see if government measures address land availability and affordability challenges unique to the city.

The Q2 2025 planning statistics paint a sobering picture of a system slowing at the wrong moment. Yet the political rhetoric signals the opposite: acceleration, ambition and scale. Whether Steve Reed’s package truly ushers in “the biggest era of housebuilding” depends not only on Whitehall policy but also on how quickly local planning departments, developers and investors can respond to the call.