Planning delays threaten housing delivery as house prices stall

Half of councils fail to meet planning conditions deadline

Only 50.8% of applications to discharge planning conditions were determined within the statutory eight-week timeframe in 2025/26, according to new research from the Home Builders Federation (HBF) and Paragon Bank Development Finance.

The median determination time was 70 days, with performance worsening from 55.6% of applications decided on time in 2023/24 to 51.8% in 2024/25, creating further delays for developers who have already secured planning permission.

The HBF called for a national framework to monitor council performance, alongside better resourcing and standardised planning conditions, warning that delays increase costs and create particular difficulties for smaller housebuilders. 

Meanwhile, Rightmove reported that average asking prices for newly listed homes rose by 1% in October to £371,015, although prices remained -0.1% lower than a year earlier.

The October rise was weaker than the typical seasonal increase, with average two-year fixed mortgage rates climbing to 5.55% and adding around £250 a month to the cost of a typical new mortgage since February.


Council housebuilding faces growing viability challenges

Local authorities are facing worsening financial viability and declining market confidence as they attempt to increase council housebuilding, according to a review by The Housing Forum.

Eight of the 16 councils surveyed said viability had deteriorated, citing high construction and borrowing costs, levies and standards, while nine reported a decline in market stability and investment confidence.

Meanwhile, 11 of the 16 councils said building safety challenges had eased, with the report calling for increased grant funding, cheaper borrowing and longer-term funding commitments to help unlock delivery.


MHCLG takes over S106 service

The Ministry of Housing, Communities and Local Government (MHCLG) has taken over the Section 106 Affordable Housing Clearing Service from Homes England, which has operated the database since its launch in December 2024.

The service connects housebuilders with housing associations and local authorities to help sell affordable homes that have been left uncontracted or unsold, with the Government saying it will refine the service over the coming months.


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