The Widening Gap between Application and Build
Planning applications are on the up, but two significant hurdles are delaying new homes…
Recent figures from TerraQuest’s Planning Portal reveal that planning applications for new homes jumped by nearly a third between April and June 2025 compared with the same period in 2024. In total, 69,597 new homes were applied for in Q2, up from 52,282 the previous year. This is welcome news for ministers, who are banking on delivering 1.5 million new homes by the end of this parliamentary term. However, separate data published on 18 September from Glenigan suggests 221,000 individual homes were granted permission in the year to June 2025, down from 237,000 in the year to June 2024.
Confidence among developers is clearly rebounding, supported by policy reforms such as updates to the National Planning Policy Framework and the Planning and Infrastructure Bill currently progressing through Parliament. Geoff Keal, CEO at TerraQuest, observed: “There are clear signs of sector recovery, with our data revealing a notable rise in planning activity. The recent uplift points to growing confidence among developers and housebuilders.”
But while planning applications are rising, the actual delivery and occupation of homes is another matter. Across much of England, thousands of dwellings remain delayed by regulatory and infrastructure bottlenecks. Two of the most significant obstacles are the building regulations approval process and the limitations of the country’s wastewater infrastructure.
Building regulations and the sign-off problem
The government’s Building Safety Act 2022 introduced a new Building Safety Regulator (BSR) to oversee the design and construction of higher-risk buildings and to raise safety standards across the sector. While widely supported in principle, the reforms have created bottlenecks in practice.
One of the biggest issues lies at Gateway 2, the approval stage that must be cleared before construction can begin. Although the statutory target for decisions is 12 weeks, many applications are taking significantly longer. Developers report widespread delays, and some applications are being rejected due to missing or unclear information.
Without approval, homes cannot progress from the construction stage to occupation. As Emily Leonard of law firm Freeths noted in an article For PBDC Today: “These are positive words for many involved in the construction industry, who have voiced concerns about the BSR’s role and effectiveness. Developers and funders, in particular, will want to see tangible improvements – and promptly.”
The government has announced reforms to speed up the process, including a fast-track pathway and increased staffing, but for now, the sign-off bottleneck remains a major drag on housing delivery.
Sewerage capacity: a hidden roadblock
Alongside building regulations, wastewater infrastructure has emerged as another serious barrier. Sewerage companies across large parts of the south and east of England are objecting to planning applications on the grounds that treatment plants lack the capacity to support new developments.
In some cases, councils grant permission but impose ‘grampian’ conditions – meaning the homes cannot be built or occupied until sewerage upgrades are secured. The problem is that many treatment works will not be expanded for years, leaving developments in limbo.
A new report by the Home Builders Federation (HBF) – A Drain on the Nation – highlights the scale of the problem. According to the research, wastewater policy is delaying around 30,000 homes, including 7,000 affordable homes. This also stalls an estimated £900m in Section 106 contributions that would otherwise fund local schools, green spaces, and infrastructure.
David O’Leary, executive director at HBF, was blunt in his comment to PBC Today: “These delays are yet another example of how misalignment between planning authorities, utility companies, and national policy is choking off housing supply. Water companies are legally responsible for ensuring network capacity and have received £2.3bn from developers over the past five years to do so. Yet in the absence of clear national direction, planning permissions are being blocked, tens of thousands of homes delayed, and billions of pounds of community investment withheld.”
The bigger picture
The paradox is striking: planning applications are rising and developers are ready to build, but regulatory bottlenecks and infrastructure gaps are just two issues stopping homes from being completed and occupied. Unless the issues with building sign-off and sewerage capacity are resolved, the government’s ambition of delivering 1.5 million new homes by 2029 will remain out of reach.
Unlocking housing supply requires more than planning approvals. It demands a coordinated approach where building regulations are applied effectively but efficiently, and where vital infrastructure keeps pace with development. Until then, the gap between homes planned and homes delivered will continue to frustrate both builders and would-be buyers
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