The Q4 Planning Application Index

‍Planning activity must increase to meet UK housing targets

Planning activity in the UK housing market must increase substantially if the government is to meet its target of 1.5 million new homes by 2029. That is the key finding from our latest Planning Application Index, a quarterly analysis of Planning Portal data. Based on applications for new homes rather than planning approvals or completed builds, the figures analysed in this quarterly Planning Application Index provide the earliest indication of housebuilders’ confidence in the economy generally and the housing market.

The current state of UK planning applications

Planning Portal statistics show that an average of 300,232 new homes were applied for annually over the past five years – theoretically sufficient to deliver the government’s target. However, in the final three months of 2024, the total number of planning applications submitted came to just 233,811. Given that it’s unrealistic to expect a 1:1 ratio between applications, approvals, and completed builds, this figure falls well short of what will be required every year up to the end of the current parliamentary term in 2029.

Regional variations in planning activity

Our new report examines historical planning application figures across England over the past five years, comparing them with verified housebuilding completions data. The picture is one of mixed fortunes for the new government, particularly when looking at the most recent figures from Q4 2024. The Q4 2024 edition delves into both national and regional findings, with the latter revealing key areas of concern:

• The Northeast saw significantly lower planning activity, accounting for just 3% of all applications submitted over the past five years.

• The Southeast accounted for almost 25% of planning applications, demonstrating stronger market engagement in this region.

Understanding these regional trends is essential for policymakers and industry leaders looking to address bottlenecks and boost housebuilding efforts across the country.

The role of Planning Portal data in tracking housing trends

95% of planning applications in England are submitted through TerraQuest’s Planning Portal. By providing this data, Planning Portal supports the industry and the wider economy, offering early market indicators that help drive growth and encourage best practice. As the primary source of planning data, Planning Portal delivers an immediate picture of on-the-ground planning activity, making the Planning Application Index an important gauge for measuring the market’s response to government policy.

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Geoff Keal, CEO at TerraQuest, the operator of Planning Portal, said:

“TerraQuest’s latest report comes at acritical juncture for the government. Changes to the National Planning Policy Framework and the introduction of the new Planning and Infrastructure Bill, make it more important than ever to track market confidence and response to legislation. This is the intention behind the Planning Application Index – it gives a more up-to-date view of planning activity across England and, by extension, a critical view into the minds of those responsible for the delivery of homes.

“It will be fascinating to track the efficacy of new government policy, especially across the next three quarters of 2025, when the market has fully calibrated to these changes and we have a more complete picture with data to corroborate.

“While the government has a huge challenge in front of it, there is cause for optimism, with a lower base interest rate and nascent signs of economic growth. This along with a concerted effort to get building underway will surely deliver what’s been needed for sometime: housing and much more of it.”

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