Busy week for Government as new frameworks announced
The housing industry has warmly welcomed the Government’s new National Planning Policy Framework, issued this week.
The latest proposals introduce a medium-sized site category, as well as enacting a “default yes” for homes being built around rail stations.
Housebuilder reports a positive reaction from the sector, with Catherine Williams, Planning Director of the Home Builders Federation, saying: “The draft NPPF reinforces government’s commitment to reforming the planning system and removing barriers to homebuilding, retaining a clear focus on sustainable development while protecting the natural environment.”
Meanwhile, the Planning and Infrastructure Bill became law this week, with the Ministry of Housing, Communities and Local Government saying that it would “speed up housebuilding and the delivery of critical infrastructure.”
Key elements of the Planning and Infrastructure Act include modernising planning committees to focus on significant developments, as well as making it easier to buy land for new homes.
Planning permissions fall sharply
The number of planning permissions granted in England during the third quarter of 2025 has fallen -34% year on year, according to a new report from the Home Builders Federation (HBF).
In total, 45,075 new homes received planning permission over the three-month period; the lowest quarterly total since 2012.
The figures also showed that 1,311 projects were approved between June and September; the eleventh successive quarter of decline in the number of sites given permission.
For the year to September 2025, planning permission was granted for 209,781 new homes; the lowest twelve-month period since 2013.
HBF said: “The further decline in investment in new housing delivery is due to weaknesses in the housing market and a lack of confidence that buyers can be found for new homes, and a viability crisis as increased taxes, levies and policy costs make many areas economically impossible to build in.
“A recent report by Zoopla found that half of the country is unviable, while the Office for Budget Responsibility’s Economic and Fiscal Outlook report, published last month, cited ‘the shortage of viable sites’ as a downside risk that may further threaten housing supply.”
House price growth flat in 2025
Rightmove published its house price index for December this week, with a -1.8% fall in property values during the month translating into an -0.6% annual fall.
However, the firm is expecting a ‘Boxing Day Bounce’, with those who paused their house move due to the Budget joining the post-Christmas boost in home-moving activity.
Rightmove also forecasts that house prices will rise by 2% in 2026.
Meanwhile, Zoopla recorded 1.1% annual house price growth in December, down from the 1.9% growth seen in 2024.
However, 1.2 million homes were sold in 2025; the largest number of sales since 2022.
The firm projects a 1.5% growth in house prices next year.
Housing View 