New housing completions in England experienced a decline during the initial year of the Labour government, according to newly released data. However, there has been a recent surge in applications for new construction projects over the past six months.
BBC Verify’s comprehensive housing tracker indicates that approximately 201,000 homes received their initial Energy Performance Certificate (EPC) in the 12 months leading up to June 2025. This figure represents an 8% decrease compared to the preceding year, continuing a downward trend that originated under the previous Conservative administration.
Conversely, data sourced from the Planning Portal reveals a substantial increase in permission requests for new residential developments outside of London. Between January and June, these requests surged by 49% compared to the same period last year.
In response to these findings, a government spokesperson acknowledged inheriting “an acute and entrenched housing crisis.” The spokesperson affirmed the government’s commitment to achieving its target of 1.5 million new homes by the next general election and to “restore the dream of homeownership” for citizens.
Energy Performance Certificates (EPCs) serve as a reliable indicator of new home construction, as all properties are legally mandated to obtain one shortly after completion. It’s important to note that the timeframe from initial planning permission to final completion and EPC acquisition can span several years.
Experts caution that unless the government accelerates the application review process, the impact of the recent surge in planning requests may not materialize into actual construction for an entire parliamentary term.
Readers can utilize an interactive tool with postcode search functionality to ascertain the number of new homes added in their local area and the corresponding targets set for future development.
Earlier this month, Housing Minister Matthew Pennycook cautioned that housing completion figures are expected to “remain low for some time.” He stated that the government would refrain from setting national annual targets but emphasized the need to “significantly ramp up supply in the later years of the Parliament.”
The ambitious goal of constructing 1.5 million homes in England within five years translates to an annual rate of 300,000 properties, a level of construction not witnessed since the late 1960s. However, it’s noteworthy that this historical period also involved significant demolition activity, primarily due to slum clearances, resulting in net gains comparable to current levels.
In December 2024, local authorities received new housing targets based on existing housing stock and affordability levels within their respective jurisdictions.
Milton Keynes, for example, registered 1,995 new homes with EPCs in the 12 months leading up to June, surpassing the government’s new annual target of 1,724, provided that the city sustains its current construction pace.
Lindsey, a nursery practitioner residing in Milton Keynes, expressed that without access to council housing, she “would absolutely not be able to live here” due to being “priced out” of the local housing market.
She advocated for an increase in affordable housing options to accommodate individuals like herself “who are working in regular jobs, not high-paid jobs.”
Peter Marland, leader of Milton Keynes City Council, voiced concern that many localities perceive the government’s target as a maximum rather than an opportunity to “aim for and exceed.”
The Labour councillor acknowledged that Milton Keynes benefits from a geographical advantage compared to other regions that may face constraints such as extensive greenbelt land or limited available space.
In contrast to Milton Keynes, Eastbourne in Sussex is among numerous councils facing a significant challenge in meeting government targets. The town has been assigned an annual target of 702 homes, yet only 127 EPCs were registered in the past 12 months.
Amber, a 19-year-old café worker in Eastbourne, resides with her parents and noted that many of her friends are in similar circumstances.
She commented: “I feel like, because it’s a seaside town, it is quite expensive, so it’s not easy for young people…especially if you’re on your own.”
Her colleague Bella, also 19 and living with her parents, shared her experience of renting in another country, stating that it “just end[ed] up having no money.”
Liberal Democrat councillor Peter Diplock, cabinet member for housing at Eastbourne Council, characterized the government’s housing target for the area as “totally unrealistic” and asserted that it fails to account for “geographical and environmental constraints on development in the town.”
He explained that Eastbourne is bordered by the English Channel, the South Downs National Park, and faces “complex flood issues” and “limited land for development,” while acknowledging that housing construction does occur annually.
Official figures indicate a decline in new home construction during the final two years of Conservative rule, with recent data suggesting a further decrease since Labour assumed power.
The number of planning applications granted also reached record lows last year.
However, there has been an increase in requests for planning permission, although experts caution that translating these requests into completed homes may take years.
Data shared with BBC Verify by Planning Portal, which is utilized by councils nationwide for planning applications, indicates that outside of London, proposals for an additional 132,000 homes were submitted after accounting for demolitions, representing a 49% increase from 88,500 during the same six-month period in 2024.
Nevertheless, the figures have yet to return to 2023 levels.
Geoff Keal, from Planning Portal, stated: “It’s still early, even now, but we are seeing an uptick. That’s good. We really need to see that [in the next six months] to give any degree of confidence. The intent of the government is really quite clear, which is giving confidence to those that are behind the changes.”
Planning Portal experienced its busiest day in March, which it attributes to individuals attempting to submit applications before fee increases took effect in April. Consequently, figures for April to June were lower than those for January to March but remained higher than the same quarter in 2024.
Rachel Clements, from planning consultancy Lichfields, noted that while developers are gaining confidence to pursue planning applications outside of London, expediting the process is essential to ensure that “the homes they contain begin to be built” within a reasonable timeframe.
The government has announced plans to accelerate the process through a new AI tool designed to assist councils in scanning extensive documentation within seconds. Additionally, housebuilders will be required to commit to construction timelines before receiving permission.
A spokesperson for the Ministry of Housing, Communities and Local Government stated: “We have already taken action to get Britain building, including by overhauling the National Planning Policy Framework, driving forward our landmark Planning and Infrastructure Bill and levelling the playing field for smaller housebuilders.
“This is on top of delivering the biggest boost to social and affordable housing in a generation with £39bn over the next decade, a £16bn National Housing Bank to support development and unlocking £53bn of private investment.”
Analysis for the housing tracker by BBC Verify utilizes Energy Performance Certificates (EPCs) to assess whether each council area has experienced an increase or decrease in housing completions compared to the previous year.
EPCs serve as a leading indicator of new home construction due to the legal requirement for all properties to obtain one within days of completion, although figures may differ from official statistics published annually in the autumn.
Additional reporting by Naresh Puri
The payouts are among the highest of any local authority in England.
The government is set to provide “initial debt repayment support” to Woking Borough Council.
Sir Sadiq Khan says his land fund provides flexibility in financing new housing projects in London.
A deputy wants a legally binding pre-sale agreement when buying or purchasing properties.
The Grade II listed building will be converted into 140 homes – 21 affordable – and a care home.