Curiosity in mass-developed new properties is sharply declining, with first-time patrons more and more turning away from costly developer-led housing.
In the meantime, demand for self-build and custom-build properties is rising steadily as extra folks search management and affordability.
But regardless of this rising urge for food, planning permissions for self-build plots are falling, limiting the UK’s potential to fulfill its housing wants by means of this fashionable route.
Planning permissions collapse as targets drift additional away
The variety of new properties granted planning permission in England in Q1 2025 has fallen to 39,170, the bottom quarterly determine since 2012, in response to the Residence Builders Federation’s (HBF) newest Housing Pipeline report.
It is a 55% drop on the earlier quarter and a 32% drop year-on-year, putting extreme strain on the federal government’s pledge to ship 1.5 million new properties by 2030.
HBF Chief Government Neil Jefferson warned: “The newest planning figures are disastrous for an business and a authorities seeking to improve housing provide over the approaching years.”
He continued: “Planning permissions and home constructing ranges is not going to improve except ministers work with business and sort out the problems stopping firms from urgent the accelerator and investing within the websites, abilities and provide chains wanted to construct the properties the nation wants.”
Deliver your dream house to life with knowledgeable recommendation, find out how to guides and design inspiration. Join our e-newsletter and get two free tickets to a Homebuilding & Renovating Present close to you.
New builds dropping favour with first-time patrons
In the meantime, new-build properties, the first supply of properties within the UK, are being shunned by first-time patrons.
A 2025 report from Evaluate My Transfer reveals that the proportion of first-time patrons buying new builds has dropped from 10.03% in 2022 to only 7.72% in 2025.
Founder Dave Sayce mentioned: “The common value of a new-build house in England as of October final 12 months was £420,000, rising 18% from the earlier 12 months. With the discount of the Stamp Obligation aid for first-time patrons, the tax they should pay on a median new-build house can be £6,000. Even with a 5% deposit, first-time patrons should pay £27,000 up entrance on common.”
The one a part of the UK the place first-time purchaser curiosity in new builds is rising in Scotland, which noticed a 2.43% improve in 2025.
Demand for self and custom-build properties is surging
Whereas conventional provide stalls, extra persons are exploring the opportunity of designing and constructing their very own properties.
In accordance with the Nationwide Customized and Self Construct Affiliation (NaCSBA), greater than 55,000 persons are registered with native councils in England below the Proper to Construct laws, which provides people the suitable to request land to construct their very own properties.
Mario Wolf, founding director of the Proper to Construct Process Pressure, informed Parliament: “We have now large untapped demand for self-build and {custom} housebuilding on this nation.”
Regardless of this demand, the UK builds simply 13,000–16,000 self or custom-build properties per 12 months, in comparison with greater than 50% of recent properties in nations like Austria or Germany being constructed this manner.
Planning permissions for self-builds falling behind demand in 2025
In 2025, curiosity in self-build properties stays robust, with native authority registers exhibiting continued development.
Nevertheless, planning permissions for serviced plots are declining – dropping 18% within the 12 months ending March 2025 to only over 5,000 plots.
The NaCSBA experiences comparable developments, with a 23% lower in permissions over latest years.
Specialists warn this hole between demand and permissions dangers stalling the supply of much-needed new properties except pressing planning reforms are applied.
With out pressing reforms to planning insurance policies and assist for self-builders, hundreds of potential new properties could by no means materialise.
