The number of new homes applied for in England reached a decade high in the fourth quarter (Q4) of 2025, cementing 2025 as the strongest year for new home applications since 2020, according to the latest data from Planning Portal operator TerraQuest.
Figures analysed in the latest edition of TerraQuest鈥檚 Planning Application Index show planning permission was sought for 335,387 new housing units in England throughout 2025, which is more than 120,000 units above 2024 levels. The rate of growth gathered pace as the year progressed, with the second half of 2025 outperforming the first by nearly 72,000 units, an increase of approximately 51%.
Applications for affordable housing also reached a five-year quarterly peak in Q4 2025, with 2025 overall recording the highest annual total for affordable housing in the last five years. Applications for market homes also rose significantly in the final quarter of the year.
Planning Portal, operated by TerraQuest, is the national platform through which roughly 95% of planning applications in England are submitted.
While TerraQuest鈥檚 figures reveal increased levels of developer intent, the report also notes high rates of attrition found later in the house-building process. While planning submissions are now tracking close to a level consistent with national housing ambitions, many schemes are stalled before completion, often due to viability pressures, infrastructure constraints or shifting economic conditions.
TerraQuest chief executive Geoff Keal said that the figures point to a clear recovery in developer confidence but warned that stronger intent must now translate into delivery.
鈥淗ousing submissions are returning to levels not seen for several years, which is a genuinely encouraging sign that confidence is rebuilding across the sector,鈥� he said. 鈥淏ut intent alone isn鈥檛 enough - the focus must now be on ensuring viable sites can move from application through to construction, so this renewed momentum results in homes being built.鈥�
Brian Berry, chief executive of the Federation of Master Builders (FMB) added: "The rising number of planning applications for new build units is positive, it clearly shows a level of trust in the government's plans for new housing. FMB data has shown confidence among SMEs is on the rise for 2026, so clearly a government that is pro-building can make a difference, even if we don't fully know the impact of the changes to the planning system.
鈥淗owever, despite a rise in applications, the attrition rate from applications to actual new homes is high, so we probably won't see over 300,000 homes being built this year. The government鈥檚 ambition to build 1.5 million new homes remains a deeply ambitious stretch target.
鈥淪ME housebuilders are still struggling to get homes built as evidenced by the long-term decline in the percentage of all new homes built by SMEs 鈥� now under 10%. Until local house-builders can be reinvigorated, the UK will remain overly reliant on large scale strategic sites for new home delivery and that's not necessarily what the public want or what's best for local communities."
Samuel Stafford, managing director of the Land, Planning & Development Federation (LPDF), added: 鈥淭he government鈥檚 recent housebuilding record has come under criticism, but current delivery levels cannot be viewed in isolation. While demand is closely linked to economic confidence, which is something government policy can certainly influence, the number of homes being completed today also reflects the legacy of regressive supply-side decisions taken by the previous administration.
鈥淭hese figures show that, particularly outside London, the development industry is responding positively to this government鈥檚 more progressive supply-side reforms, such as support for development on grey belt land.
鈥淭he priority now must be to accelerate the approval of these applications, so that a strong pipeline of deliverable permissions can be established and the industry can move quickly from consent to construction.鈥�
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