The number of new homes being approved in the UK is plummeting, reaching the lowest level in almost two decades. This could be bad news for people hoping to get on the property ladder.

New data shows that the number of new homes getting planning approval in the year to March 2024 is the lowest it’s been since 2006. That’s even worse than the period after the global financial crisis.

Here are some of the key figures:

• In the year to March 2024, just 236,644 new homes were approved, the lowest number in nearly a decade.
• The number of homes approved in the first three months of 2024 was a mere 53,862, the lowest quarterly figure in nearly a decade.
• The number of new housing sites approved in the first three months of 2024 was just 2,472. This is the lowest figure since records began in 2006.

Experts say these figures paint a gloomy picture for the future of housing in the UK.

The Worst Hit Regions

The situation is particularly bad in some parts of the country. In London, the number of new homes approved in the first three months of 2024 was the lowest it’s been since 2012.

Other areas seeing significant drops include:

• East Midlands: Down 47% on the previous quarter and 36% down year-on-year.
• Yorkshire and the Humber: Down 33% on the previous quarter.
• South East: Down 24% on the previous quarter.

What’s Behind This Housing Crisis?

The experts say several factors are to blame for the decline in new home approvals:

• The planning system: The planning system is complex and slow, and many developers are finding it difficult to get their projects approved.
• Nutrient neutrality rules: The government’s nutrient neutrality rules have been blamed for holding up the construction of 160,000 new homes. These rules require developers to offset the impact of new developments on water quality, but some say they’re too strict and are causing unnecessary delays.
• Lack of government support: The government is not doing enough to help people buy new homes. There is little help available for first-time buyers, and the government has cut back on funding for social housing.

What Needs To Happen Now?

The experts say the government needs to take action to reverse this trend. They want to see:

• Changes to the planning system: The planning system needs to be streamlined and made more efficient.
• Action on nutrient neutrality rules: The government should review the nutrient neutrality rules and make them less strict.
• More support for buyers: The government should provide more support for first-time buyers and increase funding for social housing.

Unless the government takes action, the housing crisis could get worse, with fewer new homes being built and more people struggling to get onto the property ladder.