Sector analysis has shown that while the level of new homes being granted planning permission dipped during the first year of the pandemic, this negative trend reversed in 2021 with the third highest annual total seen since 2007.

Data has been analysed on the number of residential units to be granted planning permission, how this has changed in recent years and which region is due to see the biggest boost from incoming housing stock.

The figures from Sirius Property Finance show that during the first year of the pandemic (2020), just 295,000 residential homes were granted planning permission, an annual decline of -10%.

Vincent Burch – MPU

This was the lowest level since 2015 and only the second year on year decrease since 2010.

However, over the last year a total of 319,000 new residential homes were granted planning permission, an 8% annual increase and the third highest annual total since 2007.

London looks set to see the biggest boost to new home stock levels, with planning permission granted for 60,200 residential units over the last year, accounting for 19% of the national total.

The South East saw the second highest level with planning permission granted for 46,500 new residential units equating to 15% of the overall number.

The North West (42,300) also saw planning permission granted for over 40,000 new residential homes, while in the North East, just 13,800 planning applications were granted equating to just 4% of the total seen across England.

Managing Director of Sirius Property Finance, Nicholas Christofi, commented:

“Despite Covid complications, labour shortages and an increase in construction costs, the nation’s housebuilders have persevered during the pandemic to ensure that the delivery of new homes has been maintained.

We’ve also seen a sharp increase in the volume of planning applications being granted over the last year which suggests that there is plenty in the pipeline to satisfy the ongoing need for more housing.

While 2022 will bring its own challenges to the sector, granting the nation’s housebuilders the ability to build is the first step in increasing residential stock levels and addressing the current housing crisis.”

Rolling annual total of housing (residential) units granted planning permission
Period Units Change n Change %
2007 Q3 251,400
2008 Q3 230,500 -20,900 -8%
2009 Q3 147,000 -83,500 -36%
2010 Q3 162,000 15,000 10%
2011 Q3 163,000 1,000 1%
2012 Q3 174,000 11,000 7%
2013 Q3 205,000 31,000 18%
2014 Q3 220,000 15,000 7%
2015 Q3 255,000 35,000 16%
2016 Q3 306,000 51,000 20%
2017 Q3 332,000 26,000 8%
2018 Q3 301,000 -31,000 -9%
2019 Q3 329,000 28,000 9%
2020 Q3 295,000 -34,000 -10%
2021 Q3 319,000 24,000 8%
Regional split of granted planning permission applications over the last year
Location Number housing units granted permission % of national total
London 60,200 19%
South East 46,500 15%
North West 42,300 13%
East of England 38,600 12%
South West 31,600 10%
East Midlands 30,100 9%
West Midlands 30,000 9%
Yorkshire and the Humber 24,900 8%
North East 13,800 4%
England 318,600 100%
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