Housing Momentum Builds

2. Significant Growth in Affordable Housing Submissions

Notably, Q3 2025 also recorded the highest number of applications for both affordable homes and affordable rent sector homes in any quarter since 2021. This uptick spans:

• Social rented housing;
• Affordable rented housing; and
• Intermediate housing.

The increase demonstrates industry support for the government’s renewed focus on social and affordable delivery — and a stronger appetite among applicants to bring forward mixed‑tenure schemes.

3. Quarter‑on‑Quarter Momentum Strengthens

Following a dip in Q2 caused by unusually high Q1 activity levels, the market has rebounded convincingly:

• Proposed units rose by approximately 42% between Q2 and Q3;
• This is the largest Q2–Q3 uplift of the decade, showing the durability of the trend.

The data reflects a sector responding to greater policy clarity post‑election, including the government’s commitments on planning reform, new towns and unlocking housing supply.

3. Regional Performance: Broad‑Based Growth Across England

Most regions saw strong rises in residential activity compared with previous years. Standout performers include:

• East of England — more than 100% growth on both 2023 and 2024;
• North West — a triple‑digit increase on Q3 2024; and
• South East — an 83% rebound after a quieter Q2.

Only the North East and South West saw modest declines compared with last year.

These shifts point to growing confidence across England’s development markets, with large‑scale schemes becoming increasingly prevalent.

4. The Challenge: Converting Submissions Into Delivery

While the surge in submissions is welcome, the report highlights a persistent issue:

The gap between applications submitted, validated, approved and ultimately built.

Key system pressures remain:

• Long determination periods, particularly for major residential schemes;
• Capacity constraints within local planning authorities; and
• Wider economic uncertainty and inflationary pressures.

The report aligns with recent ministerial comments emphasising the need to remove barriers to delivery and create the right environment for applications to move smoothly through the system.

5. A Positive Outlook Heading Into Q4

According to the report, the Portal's data has shown that historically, Q4 outperforms Q3 in housing submissions, meaning the strong Q3 results could be a precursor to even more promising figures for the end of 2025.

Coupled with the Government’s announcement of 12 recommended locations for new towns, TerraQuest suggests that confidence in the development sector is rising — and the Q4 index will be a critical milestone for confirming this renewed momentum.

In summary, the findings of the Planning Application Index Q3 2025 marks a clear turning point for England’s planning landscape. Rising applications, record‑high affordable housing submissions and strong performance across most regions indicate that developer confidence is rebuilding.

Turning that intent into delivery remains the next major challenge — but the trajectory is encouraging, and the data points towards a more active, energised planning environment in 2026.