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The Home Builders Federation (HBF) said permissions continued to fall "sharply", with home numbers approved in first the half of 2023 down 19%. If the trend continues, housing supply for England could fall to levels not seen for a decade, it added. The government said planning permission was granted for 264,000 homes in the past year.
The Conservative government's 2019 manifesto promised to build 300,000 homes a year in England by the mid-2020s. But in December, the government said councils would get more flexibility over meeting centrally-set housing targets.
The federation said the data confirmed industry warnings that in the midst of an increasingly "anti-development" policy environment and a worsening economy, the number of homes built in the coming years could fall to record low levels.
About 2,456 housing projects were granted planning permission during the second quarter of 2023. This number was down 10% on the previous quarter, 20% on the same time a year ago, and was the lowest level since similar records began in 2006, according to the report.
The HBF said that if the trend continued it would lead to a reduction in housing delivery of 44,000 homes a year, which would see housing supply for England fall to levels not seen for a decade.
