Number of planning applications is down despite Labour's enormous 1.5m housing target: "Nothing but hot air"

THE amount of planning applications and planning permissions granted are down this year despite Labour's enormous home-building target of 1.5million by the end of this Parliament.

Between July to September 2025, district level planning authorities in England received 78,800 applications for planning permission, down 3% from the same quarter a year earlier, new government stats have revealed.

They decided 76,200 applications for planning permission, down 4% from the same quarter a year earlier.

They granted 66,400 decisions, down 4% from the same quarter a year earlier, this is equivalent to 87% of decisions, unchanged from the same quarter a year earlier

And they granted 7,100 residential applications, down 3% from the same quarter a year earlier.

In the year ending September 2025, district level planning authorities:

Michelle Lawson, Director at Fareham-based Lawson Financial, said the target was a “pipe dream”.

She continued: "The 1.5m home building figure was nothing more than a hot air statement and a pipe dream. Not one government has hit their housebuilding target so this one won't be any different. 

"The planning departments are taking way too long to get things past and are another victim of being understaffed and overregulated. More projects can be completed under Permitted Development but the log jam in all departments isn't helping matters. 

“Add to the mix the onerous tax rise and employment shambles this is a recipe for disaster that will just escalate further.”

Samuel Mather-Holgate, Managing Director & IFA at Swindon-based Mather and Murray Financial, claimed Labour had no plan.

He said: “It should be strikingly obvious that setting a target without a strategy of achieving it is doomed to fail. Labour have not put incentives in place for builders or buyers yet wonder why they are so off target on their plan to get Britain building. 

"The key to success here is to incentivise builders to construct affordable homes through the tax system. Build them and they will sell – although incentivising buyers through a revamped help to buy scheme would then turbocharge the process and kick start Labour on its way.”

Aaron Strutt, Product and Communications Director at London-based Trinity Financial, said the building blocks are not in place for the homes to be built.

He added: “The price of materials has literally gone through the roof, so building homes is not economically viable for many developers at the moment. 

"There is a shortage of workers and a lack of confidence in the economy. Most of the big lenders also no longer offer self-build mortgages, so these figures do not come as a surprise.”