Labour’s 1.5 Million home promise at risk as planning applications hit 13 year Low

Labour’s flagship pledge to build 1.5 million new homes over five years faces significant challenges as planning applications for new housing have plummeted to their lowest level in over a decade.

Data compiled by construction firm Barbour ABI for policy think tank Britain Remade shows planning applications fell to just 39,170 homes in the first quarter of 2025, representing a 55% decline from the previous quarter and a 32% drop compared to the same period last year. The figures suggest the government is on track to miss its ambitious target by approximately 480,000 homes.

Analysis indicates that to achieve the 1.5 million target, equivalent to 300,000 homes annually, Britain requires planning applications for around 40,000 new homes each month. However, the current average stands at just 18,284 monthly applications, less than half the required rate. The rolling annual total of homes receiving detailed planning permission has fallen to 225,067, the lowest since 2012.

Sam Richards of Britain Remade criticised the government’s approach, stating: “The government has not done enough to make it easier, faster, cheaper to build the homes that we need. They are making some steps in the right direction, but they’re not going far enough and they’re not going fast enough”.

The shortage is particularly acute in London and surrounding areas, where 25 councils show the biggest shortfalls according to government housing need calculations. Islington council needed 1,230 homes in the first half of 2025 but received applications for just 67 units.

Applications are also lagging in major cities including Cambridge, Birmingham, Newcastle, and Leeds .

A government spokesperson defended their record, stating they inherited “an acute and entrenched housing crisis” but are delivering through their “Plan for Change” which includes overhauling planning frameworks and investing £39 billion over the next decade in social and affordable housing.