Planning activity must increase substantially if the government is to meet its target of 1.5 million new homes by 2029. That is the key finding from the latest Planning Application Index, TerraQuest’s quarterly analysis of Planning Portal data.

Based on applications for new homes rather than planning approvals or completed builds, the figures analysed in TerraQuest’s quarterly Planning Application Index give the earliest indication of housebuilders’ confidence in the economy generally and the housing market in particular.

Planning Portal statistics show that an average of 300,232 new homes were applied for annually over the past five years – theoretically sufficient to deliver the government’s target. However, in the final three months of 2024, the total number of plans submitted came to just 233,811.

Given that it’s unrealistic to expect a 1:1 ratio between applications and their approval and subsequent build out, this figure falls well short of what will be required every year up to the end of the current parliament in 2029.

TerraQuest’s new report examines historical planning application figures across England over the past five years, comparing those with verified housebuilding completions data. The picture is one of mixed fortunes for the new government, particularly when looking at the most recent figures from Q4, 2024.

The Q4 2024 edition delves into both national and regional findings, with the latter also revealing some points of concern. In the North East, for instance, planning activity was significantly lower than the rest of the country, accounting for just over 3% of all applications submitted over the past five years. Conversely, the South East accounted for almost a quarter over the same period.

95% of applications in England are submitted through TerraQuest’s Planning Portal. Planning Portal share this data to support the industry and wider economy, providing these early market indicators to help drive growth and encourage best practice. As the source of this data, Planning Portal can offer a more immediate picture of activity ‘on the ground’ making this Planning Application Index series act as an important gauge for measuring the market’s response to government policy.

Geoff Keal, CEO at TerraQuest, the operator of Planning Portal, said: “TerraQuest’s latest report comes at a critical juncture for the government. Changes to the National Planning Policy Framework and the introduction of the new Planning and Infrastructure Bill make it more important than ever to track market confidence and response to legislation. This is the intention behind the Planning Application Index – it gives a more up-to-date view of planning activity across England and, by extension, a critical view into the minds of those responsible for the delivery of homes.

“It will be fascinating to track the efficacy of new government policy, especially across the next three quarters of 2025, when the market has fully calibrated to these changes and we have a more complete picture with data to corroborate.

“While the government has a huge challenge in front of it, there is cause for optimism, with a lower base interest rate and nascent signs of economic growth. This along with a concerted effort to get building underway will surely deliver what’s been needed for some time: housing and much more of it.”

To download TerraQuest’s Planning Application Index, please visit: https://www.terraquest.co.uk/news-and-insights/the-planning-application-index-q4