There has been a significant decline in the number of new residential property schemes granted planning consent, according to the latest figure from the Home Builders Federation (HBF).

The Housing Pipeline Report shows that in Q3 planning permission levels dropped 2% quarter-on-quarter to 2,778.

The number of projects given the green light was also down by 18 per cent when comparing the first nine months of 2023 to last year. There was also fall in the second quarter.

In total, there were 61,221 housing units approved in Q3 2023, down 8% quarter-on-quarter and 21% lower than the corresponding period last year.

In the first nine months of 2023, consent was granted for 198,121 new homes, which was 18% down on last year.

Residential property developments schemes with 10 or more units accounted for 91% of approved schemes in Q3 ’23. On a quarterly basis, there was an 8% drop in these types of developments at 55,510 and this was down by 21% on a year earlier.

The remainder of approved units were on smaller new-build projects of up to nine units, including self-build schemes, homes within non-residential projects and the conversion of non-residential properties.

The figures also show that there was an 8% quarterly fall to 1,722 in the number of private sector housing projects with three or more units gaining approval. Compared to the same period a year ago, this was a 21% fall.

Some 54,638 units were approved, which was a 4% drop on the previous quarter and down by a fifth year-on-year.

There were 76 social housing projects with three or more units approved in Q3, which was a 16% fall on Q2 and a 44% decline on 2022. Some 4,358 units were approved in the social housing sector in Q3, which was a 42% fall on Q2 and down 39% on the previous year.

Regionally, unit approvals in the North West, Yorkshire and the Humber and Scotland rose in the double digits quarter-to-quarter by 23%, 35% and 31% respectively.

By comparison, significant falls in unit approvals were recorded in the North East, East of England, London and Wales with declines of 70%, 31%, 41% and 30% respectively.

The only regions to record a rise in housing unit approvals so fat this year are Scotland and Yorkshire and the Humber, up 24% and 14% respectively.

The largest decline was recorded in London at 37%. This was followed by the East Midlands, East of England, North West and the South West with declines of 35%, 25%, 20% and 19% respectively.

England’s housing supply heading for nine-year low, with the data from HBF showing that the number of sites granted planning permission in England this year was at the lowest level since the report began in 2006.

Across England, 2,447 projects were approved in Q3 which was 3% down and 19% lower than 2022. There were 50,316 housing units granted permission in Q3, down 12% quarter-on-quarter and a 28% annual decline.

For the year to September, some 245,872 units were granted permission, which was a 15% fall on last year.

HBF said if this 15% drop translated into completions next year, housing supply in 2024 could drop below 200,000 a year which would be the lowest since 2014.

Stewart Baseley, executive chairman at the HBF, commented: “This is the inevitable outcome of several years of anti-growth policy and rhetoric.

“Businesses have warned for some time that the impact of government action would be severe but now there is now a mounting body of evidence.

“If ministers continue with the proposals to rid the planning system of targets and consequences, no matter how it is packaged, it will result in fewer new homes and represents another victory for NIMBY backbenchers.”

He added: “Removing the requirement for local housing needs assessments and allowing councils to plan for as few homes as they wish will see housebuilding in some areas collapse with investment in jobs and communities all suffering.

“Putting politics and party management above the interests of those households struggling amidst a worsening housing crisis may seem attractive in the short term but the long-term consequences for the economy and society are horrendous.”