Quick answer
Official figures published on 24 September 2026 show a mixed picture for housebuilding in England. Housing starts rose to 35,910 in April to June, up 20% on a year earlier, but permission was granted for 212,000 homes in the year to June, down 12% from 242,000. Net additions, estimated from energy certificate data, were 196,900 in 2025-26, below the pace needed for the government's 1.5 million homes target. A new National Planning Policy Framework published in August gives a default yes to homes near well-connected stations. For developers, sites with planning are scarcer and more valuable, and well-prepared applications matter more than ever.
What the latest housing figures show
The Ministry of Housing, Communities and Local Government publishes quarterly housing supply indicators. The release for April to June 2026, published on 24 September, shows:
- Starts: 35,910 seasonally adjusted, up 6% on the quarter and 20% on a year earlier. In the year to June there were 136,330 starts, up 15%.
- Completions: 35,800, down 3% on the quarter and up 1% on a year earlier. Completions in the year to June were 143,770, unchanged.
- Planning permissions: 212,000 homes in the year to June 2026, down 12% from 242,000. These provisional figures come from Glenigan and are not accredited official statistics.
- Net additional dwellings: an estimated 196,900 in the year to March 2026, based on energy performance certificate data. The full annual figures follow in November.
More starts now should mean more completions later. Fewer permissions point to a thinner pipeline in a year or two.
The 1.5 million homes target
The same release estimates net additions of 437,900 between 9 July 2024 and 20 September 2026. The government said in August that it had passed the quarter-way mark towards its target of 1.5 million homes. Net additions of 196,900 a year are well short of the 300,000 a year that 1.5 million homes over five years implies, which is why planning reform remains a priority under Prime Minister Andy Burnham and Housing Secretary Angela Rayner.
The Planning and Infrastructure Act received Royal Assent on 18 December 2025. It includes locally set planning fees, training for planning committee members, a national scheme of delegation and a Nature Restoration Fund. Our guide to biodiversity net gain and nutrient neutrality covers the environmental rules that still shape many sites.
New planning rules near stations
On 17 August 2026 the government published a new National Planning Policy Framework. The main changes include:
- A default yes for homes within reasonable walking distance of well-connected train, tram and underground stations, with minimum density expectations.
- Less weight for local policies that conflict with national policy.
- A new medium development category, with fewer information requirements for smaller schemes.
- A national minimum of 40% accessible homes on major developments.
For smaller developers, the medium category and the station rule could make some sites easier to bring forward. Check the detail with your planning consultant before you rely on it for a purchase.
Planning departments are still stretched
New rules only help if councils can process applications. The Home Builders Federation's Planning on Empty 2026 report, published in August, found that council planning departments are working at an average of 80% of full staffing, and that only around 20% of major applications are decided within the 13 week statutory period. Delays like these add holding costs for anyone who buys land before planning is granted.
Build those costs into the price you pay. A residual land value calculation works back from the end value to what a site is worth to you, after build costs, finance, fees and profit. On the build side, our report on construction output covers the cost and activity picture for developers.
What it means for developers and finance
- Land with planning is worth more. With fewer permissions coming through, consented sites are in demand. Land finance can help you secure a site quickly, then move onto ground-up development finance once you are ready to build.
- Buying before planning needs a longer runway. Allow for slow decisions. Planning gain bridging covers buying a site and holding it while you apply, and our guide to planning gain and land value explains how the uplift works.
- Permitted development is an alternative. Some conversions avoid a full application. See permitted development finance.
- Lenders want certainty. Most development lenders want full planning before they fund the build. Our guide to planning permission and development finance explains why.
We search the market across development finance lenders and approach those whose criteria suit your site and plans.
Common questions
How many homes were started in England in Q2 2026?
Government figures show 35,910 starts in April to June 2026, seasonally adjusted, up 20% on the same quarter of 2025.
Are planning permissions falling?
Yes. Provisional Glenigan figures show permission for 212,000 homes in the year to June 2026, down 12% from 242,000 a year earlier.
What changed in the new NPPF in August 2026?
It introduced a default yes for homes near well-connected stations, a new medium development category, and less weight for local policies that conflict with national policy.
Can I get development finance without planning permission?
Most development lenders want full planning before funding a build. Planning gain bridging or land finance can fund the purchase while you apply.
This article reports news and published figures as at 15 October 2026. It is for general information only and is not legal, tax or financial advice. Bridge & Build Finance is a commercial finance brokerage service, not a lender. Finance is subject to status, lender criteria, valuation, underwriting and approval.
