A stronger housing pipeline....now the challenge is turning confidence into delivery

According to TerraQuest's latest Planning Application Index (Q2 2026), applications were submitted for 189,520 new homes during the first half of 2026, making it the strongest first half of the decade. The data also shows that, for the first time since 2022, housing unit submissions exceeded 400,000 homes over a rolling 12-month period, highlighting the scale of developer activity currently entering the planning system.

 

Figures released by the Ministry of Housing, Communities and Local Government (MHCLG) reinforce this trend. In the year to June 2026, outline residential applications included 246,000 homes, representing a 41% increase on the previous year. Whilst the number of outline applications actually fell slightly, the number of homes proposed increased significantly, suggesting that larger strategic sites are increasingly driving activity within the planning system.

 

The Planning Application Index also suggests that developers are increasingly concentrating on larger sites. The average number of homes included within a planning application has almost doubled, from 6.8 in Q1 2024 to 12.9 in Q2 2026, indicating a shift towards larger developments that have the potential to make a more significant contribution towards housing supply.

 

Whilst these figures are undoubtedly positive for the future pipeline of development, they also highlight the challenge of translating planning activity into completed homes. TerraQuest notes that developer intent continues to outpace delivery, with housing starts remaining some way behind the volume of homes moving through the planning system. Emerging evidence suggests that securing planning permission is only part of the challenge, with many schemes facing viability, funding and infrastructure constraints before they can progress to construction.

 

The introduction of the Building Safety Levy on 1 October 2026 represents another consideration for developers bringing forward qualifying schemes. Whilst the levy is intended to support the remediation of historic building safety issues, it also adds to the range of costs that developers must account for when assessing whether schemes remain commercially deliverable.

 

As Government continues to pursue ambitious housing targets and implement reforms intended to support growth, attention is increasingly turning towards delivery. Whilst a growing planning pipeline is a welcome sign of confidence, success will ultimately be measured by the number of homes completed and occupied rather than the number entering the system.

 

Hannah Young, Planning Director at DHA, comments:

 

"The increase in housing applications is a positive indication that developers are responding to a more supportive policy environment and continue to recognise the need for new homes across the country.

 

However, securing planning permission is only one stage of the development process. Bringing sites forward in the current economic climate remains challenging, particularly where rising construction costs, infrastructure requirements and additional regulatory obligations affect viability.

 

New development has an important role to play in funding local infrastructure and supporting sustainable communities, but it cannot be expected to address every funding gap. If we are to achieve meaningful increases in housing delivery, there needs to be a balanced approach that recognises both the importance of infrastructure investment and the commercial realities of delivering development. Understanding the cumulative burden placed on schemes will be crucial if we are to secure both the homes and infrastructure that communities need."