Housing starts — the point at which construction physically begins on a new home — are one of the most important indicators of future supply in the UK property market. Every home that will be available to buy or rent in 18-24 months time begins as a housing start today. The Department for Levelling Up, Housing and Communities (DLUHC) publishes quarterly data on housing starts and completions across England, providing a detailed picture of where new homes are being built, at what rate, and how the pipeline is evolving. In 2025-2026, the housing starts picture is one of recovery from the sharp downturn of 2023, but with significant regional variations that have profound implications for local housing markets, buyer choice, and the government's ambition to deliver 300,000 new homes per year.
This article provides a comprehensive regional analysis of housing starts data for 2025-2026. We examine the national trajectory, break down starts by region and local authority, analyse the planning-to-completion pipeline, assess developer output across the country, and explore the factors driving regional variations — from planning approval rates and land availability to developer strategies and local market conditions. Whether you are a buyer wanting to understand what new homes will be available in your area, an investor assessing regional supply dynamics, or a policy observer tracking progress towards housing targets, this guide provides the data and context you need.
National Housing Starts: The Recovery Trajectory
Housing starts in England reached a recent low point in 2023, when annual starts fell to approximately 142,600 — a 19% decline from the pre-correction level. This collapse was driven by the mortgage rate shock of late 2022 and 2023, which dramatically reduced buyer demand and led developers to slow or pause site openings to manage their exposure to a weakening market. Since then, starts have recovered steadily as market conditions improved.
Annual Housing Starts in England
| Period (Year to Q3) | Total Starts | Private Enterprise | Housing Associations | Local Authority | YoY Change |
|---|---|---|---|---|---|
| 2019 | 175,200 | 134,800 | 36,200 | 4,200 | -2.8% |
| 2020 | 146,800 | 112,600 | 30,400 | 3,800 | -16.2% |
| 2021 | 184,100 | 142,400 | 37,200 | 4,500 | +25.4% |
| 2022 | 176,400 | 136,200 | 35,800 | 4,400 | -4.2% |
| 2023 | 142,600 | 108,400 | 30,200 | 4,000 | -19.2% |
| 2024 | 148,200 | 112,800 | 31,200 | 4,200 | +3.9% |
| 2025 (est.) | 157,800 | 120,600 | 32,800 | 4,400 | +6.4% |
The recovery is real but gradual. At 157,800 annual starts, the current run rate is still approximately 10.5% below the pre-correction level and roughly 47% below the government's target of 300,000 net additional homes per year. The shortfall is a structural challenge that extends far beyond the cyclical downturn — it reflects decades of underbuilding, planning system constraints, skills shortages, and the economic realities of housebuilding margins.
Understanding the 300,000 Target
The government's target of 300,000 net additional homes per year in England encompasses all sources of new supply: private sector new builds, housing association and local authority construction, conversions, changes of use, and demolition offsets. Gross housing starts of 157,800 translate to net additions of approximately 210,000-220,000 per year when conversions and changes of use are added (and demolitions subtracted). This still leaves a gap of approximately 80,000-90,000 homes per year against the target — a gap that would require a roughly 40% increase in total output to close.
Regional Breakdown: Where Are Homes Being Built?
Housing starts are not distributed evenly across England. The regional breakdown reveals significant concentrations and notable gaps that have direct implications for local housing markets, buyer choice, and price dynamics.
Housing Starts by Region (Year to Q3 2025)
| Region | Housing Starts | Share of National Total | YoY Change | Starts per 10,000 Population | vs 2019 Level |
|---|---|---|---|---|---|
| South East | 28,400 | 18.0% | +5.2% | 30.8 | -12.6% |
| North West | 22,600 | 14.3% | +9.2% | 30.6 | -6.4% |
| East of England | 20,200 | 12.8% | +4.8% | 32.2 | -11.8% |
| South West | 18,600 | 11.8% | +7.4% | 32.8 | -9.2% |
| West Midlands | 17,400 | 11.0% | +8.6% | 29.2 | -7.8% |
| East Midlands | 16,200 | 10.3% | +7.8% | 33.4 | -5.8% |
| Yorkshire & Humber | 14,800 | 9.4% | +6.8% | 26.8 | -11.4% |
| London | 12,400 | 7.9% | +2.4% | 13.8 | -22.4% |
| North East | 7,200 | 4.6% | +10.8% | 27.0 | -4.2% |
| England Total | 157,800 | 100% | +6.4% | 27.8 | -10.5% |
Key Regional Findings
South East dominates by volume but is underperforming
The South East accounts for the largest share of housing starts (18%), reflecting its large population and extensive commuter belt. However, starts per capita (30.8 per 10,000 population) are below the East Midlands (33.4) and South West (32.8), and the region remains 12.6% below its 2019 level. Planning constraints, high land costs, and affordability challenges continue to limit output.
North East and North West are recovering fastest
The North East (+10.8% YoY) and North West (+9.2% YoY) are seeing the strongest recovery in starts, driven by relatively better affordability, strong first-time buyer demand, and major regeneration programmes in cities like Manchester, Liverpool, and Newcastle. The North East is also the region closest to its pre-correction level, just 4.2% below 2019. For how these starts translate into pricing, see our inflation and new build prices analysis.
London is building the least relative to population
At just 13.8 starts per 10,000 population, London has by far the lowest rate of new housebuilding relative to its population — approximately half the national average. This reflects the extreme cost and complexity of building in the capital (predominantly brownfield sites, high-rise construction, complex planning requirements), the impact of the building safety crisis on apartment development, and affordability constraints limiting buyer demand. London remains 22.4% below its 2019 level, the weakest recovery of any region.
East Midlands leads on per-capita delivery
The East Midlands has the highest rate of housing starts per capita at 33.4 per 10,000 population, reflecting a combination of available land, relatively permissive planning environments in many local authorities, strong developer appetite for the region's favourable affordability profile, and major strategic growth locations around Northampton, Corby, and the Leicester-Nottingham corridor.
The Planning-to-Completion Pipeline
Housing starts do not emerge from a vacuum — they depend on a functioning planning pipeline that converts applications into permissions, and permissions into starts. Understanding this pipeline is critical for anticipating future supply.
The Pipeline Stages and Typical Timescales
Planning Application Submitted
Typical duration to decision: 8-16 weeks (minor) / 13-26 weeks (major)
Planning Permission Granted
Conditions discharge, s106 negotiation, reserved matters: 3-12 months
Housing Start (Construction Begins)
Site preparation, infrastructure, foundation work: recorded as a "start"
Construction Period
Typical build time: 6-9 months (house) / 12-24 months (apartment block)
Completion and Handover
Snagging, NHBC inspection, final sign-off, legal completion
The total pipeline from planning application to a buyer moving in typically takes 2-4 years for a standard housing development, though large strategic sites can take 5-10 years from initial application to completion of the final phase. This time lag means that the housing starts we see today reflect planning decisions made 1-3 years ago, and the homes that buyers will be choosing from in 2027-2028 are being started now.
Planning Pipeline: Permissions vs Starts
| Year | Residential Permissions Granted (units) | Housing Starts | Conversion Rate (Starts/Permissions) |
|---|---|---|---|
| 2019 | 348,200 | 175,200 | 50.3% |
| 2020 | 286,400 | 146,800 | 51.3% |
| 2021 | 322,600 | 184,100 | 57.1% |
| 2022 | 308,400 | 176,400 | 57.2% |
| 2023 | 278,600 | 142,600 | 51.2% |
| 2024 | 292,800 | 148,200 | 50.6% |
| 2025 (est.) | 305,000 | 157,800 | 51.7% |
A striking feature of the data is the persistent gap between permissions and starts. Approximately 300,000 residential units receive planning permission each year in England, but only about 50-57% are actually started. The remaining permissions expire unused, are delayed, or relate to sites that prove unviable for development. This "planning permission wastage" is a major structural issue: even if the planning system were to grant substantially more permissions, there is no guarantee that they would translate into proportionally more homes.
Why Do Permissions Not Become Starts?
Multiple factors explain the gap: (1) Viability challenges — permissions granted on sites where development is not economically viable at current prices and costs; (2) Infrastructure constraints — sites dependent on road, utility, or transport infrastructure that is not yet in place; (3) Phasing decisions — large sites where the developer has permission for 500+ homes but builds 50-80 per year to match market absorption rates; (4) Speculative permissions — landowners obtaining permission to increase land value without intending to build; (5) Skills and capacity constraints — developers unable to recruit sufficient workforce to start all permitted sites simultaneously.
Developer Output by Region: Who Is Building Where
The geographical footprint of the major housebuilders varies significantly, with implications for buyer choice, competition, and pricing in different regions.
| Developer | National Output | Strongest Regions | Growth Regions |
|---|---|---|---|
| Barratt Redrow | ~16,890 | South East, North West, East Midlands | North West, West Midlands |
| Taylor Wimpey | ~10,480 | South East, South West, Scotland | East Midlands, Yorkshire |
| Persimmon | ~10,160 | North East, Yorkshire, North West | East Midlands, West Midlands |
| Bellway | ~8,240 | North East, South East, East of England | West Midlands, South West |
| Vistry Group | ~16,200 | South East, East Midlands, South West | All regions (partnerships model) |
| Berkeley Group | ~4,020 | London, South East (exclusively) | Outer London, Home Counties |
The concentration of developer activity creates local market dynamics that buyers should understand. In the North East, Persimmon and Bellway (both headquartered in the region) have particularly strong market positions, often dominating local developments. In London, Berkeley Group and the build-to-rent sector are the primary new build sources, with volume housebuilders having limited presence. The Midlands and South West offer the broadest mix of developer options, with all major builders active and competing for market share.
Housing Completions: The Output Picture
While starts indicate future supply, completions measure actual delivery. DLUHC data shows a lag of approximately 12-18 months between starts and completions for typical houses, and 18-30 months for apartment blocks. This means the completion data is currently reflecting starts from 2023-2024 — the low point of the cycle.
| Period | Completions (England) | YoY Change |
|---|---|---|
| Year to Q3 2021 | 168,400 | +26.8% |
| Year to Q3 2022 | 172,800 | +2.6% |
| Year to Q3 2023 | 162,200 | -6.1% |
| Year to Q3 2024 | 148,600 | -8.4% |
| Year to Q3 2025 (est.) | 152,400 | +2.6% |
Completions are beginning to recover, but the turnaround lags starts by approximately 12-18 months. The current completion rate of approximately 152,400 per year reflects the reduced starts of 2023-2024. As the higher starts of 2025 work through the construction pipeline, completions are expected to accelerate through 2026 and into 2027, potentially reaching 160,000-170,000 by late 2026 — still well short of the government's target but a meaningful improvement.
Factors Driving Regional Variation
The wide variation in housing starts across regions is not random — it reflects a complex interplay of factors that differ significantly from place to place.
Planning System Performance
Local planning authority (LPA) performance varies enormously. The proportion of major applications decided within 13 weeks ranges from under 50% in some London boroughs to over 90% in parts of the East Midlands. LPAs without an up-to-date local plan (approximately 40% of all LPAs in England) face particular challenges, as the lack of a plan creates uncertainty for developers and opens decisions to legal challenge.
Land Availability and Type
Regions with abundant greenfield land (East Midlands, South West, parts of the North) can typically start homes more quickly and at lower cost than regions dependent on brownfield or constrained urban sites (London, parts of the South East). Brownfield development involves higher site preparation costs, potential contamination remediation, and more complex planning processes.
Market Demand and Affordability
Developers start homes where they expect to sell them at viable margins. Regions with strong demand and manageable affordability ratios (North West, East Midlands, West Midlands) see faster build-out rates than regions where demand is constrained by affordability (London, South East). For the latest on how first-time buyer demand is driving regional activity, see our first-time buyer analysis.
Infrastructure Capacity
Utility connections (water, electricity, gas, broadband), road capacity, and drainage infrastructure can be significant constraints. In parts of southern England, water stress and nutrient neutrality requirements have effectively frozen new planning permissions until infrastructure solutions are delivered. Electricity grid capacity is also becoming a constraint as heat pumps and EV chargers increase per-home electricity demand.
Environmental Constraints
Nutrient neutrality requirements (affecting development near protected habitats) have been a significant brake on housing delivery in parts of the Solent, Somerset, Tees, and elsewhere. English Nature estimates that approximately 145,000 homes with planning permission are currently stalled due to nutrient neutrality issues. The government has proposed legislative solutions, but implementation remains complex.
Labour Market Availability
The construction skills shortage is not evenly distributed. London and the South East face the most acute shortages (and highest labour costs), while parts of the North and Midlands have somewhat better labour availability — though shortages are universal in specialist trades like heat pump installation. For more on how labour costs affect pricing, see our construction cost analysis.
Scotland and Wales: Separate Data, Similar Challenges
Housing data for Scotland and Wales is published separately by the respective devolved administrations, but the broad trends are similar to England.
Scotland
Wales
Scotland consistently delivers a higher rate of housing starts per capita than England (40.8 vs 27.8 per 10,000 population), reflecting a more proactive public sector housebuilding programme and the impact of the Scottish National Investment Bank's housing fund. Wales has the lowest per-capita starts of any UK nation, reflecting a combination of geographical constraints, lower population density, and a housing association sector that has faced particular funding challenges.
Frequently Asked Questions
Will the government reach its 300,000 homes per year target?
Not in the short term. Current output of approximately 210,000-220,000 net additional homes per year is roughly 30% below the target. Reaching 300,000 would require a sustained increase in both private and public sector output, planning reform, infrastructure investment, and resolution of the skills shortage. Most industry observers expect gradual progress rather than a step-change.
What does the housing starts data mean for buyers?
Rising starts mean more new homes will become available for purchase in 2027-2028, improving buyer choice. However, the increase is moderate, and supply will remain constrained in many areas. This supports modest price growth rather than the sharp price falls some buyers hope for. Regions with stronger starts recovery (North West, North East, East Midlands) may see the most improvement in buyer choice.
Why are so few homes being built in London?
London faces a combination of challenges: extremely high land costs, complex brownfield sites, the building safety regime (which adds cost and delays to apartment blocks), stretched affordability limiting demand, planning system capacity constraints, and the lingering effects of the cladding crisis. At 13.8 starts per 10,000 population, London is building at roughly half the national rate — a chronic undersupply that contributes to the capital's housing affordability crisis.
How long does it take from housing start to move-in?
For a typical 2-3 bedroom house, the construction period from start to completion is approximately 6-9 months. For apartment blocks, it is typically 12-24 months depending on the number of storeys. Add time for snagging, NHBC inspection, and legal completion, and the total from start to move-in is typically 8-12 months for houses and 15-30 months for apartments.
Conclusion: Recovery in Progress, but Far From Enough
Housing starts in England are recovering from the 2023 trough, with annual starts reaching approximately 157,800 — a 6.4% year-on-year increase. The recovery is broad-based across regions, with the North East and North West leading the way, but London lagging significantly behind. The planning pipeline remains healthy, with approximately 300,000 units receiving permission annually, but the conversion rate from permission to start remains stubbornly around 50%, limiting the impact of planning reform alone.
For buyers, the gradually improving supply picture is modestly positive: it means more developments to choose from, more competition between developers (which supports incentive generosity), and some relief from the tight supply conditions that have characterised recent years. However, the gap between supply and the government's 300,000-home target remains vast, and structural constraints — planning complexity, skills shortages, infrastructure limitations, and environmental requirements — will prevent rapid closure of this gap. The implication is that new build supply will remain constrained relative to demand for the foreseeable future, supporting prices and limiting the prospect of significant price declines. For more context on the factors shaping new build prices, see our analysis of construction costs and our comprehensive winter 2026 market report.