Interest in mass-produced new homes is falling significantly as first-time buyers increasingly seek self-build and custom-build options for affordability and control. Despite this growing demand, the UK faces a decline in planning permissions for self-build plots, limiting housing options. In Q1 2025, planning permission for new homes in England fell to the lowest level since 2012, underscoring the challenges in meeting housing targets. Experts urge government cooperation with builders to address barriers that hinder new housing developments, while first-time buyers turn away from expensive new builds, as costs continue to rise.
The average cost of a new-build home in England as of October last year was £420,000, rising 18% from the previous year.
Planning permissions and house building levels will not increase unless ministers work with industry and tackle the issues preventing companies from pressing the accelerator and investing in the sites, skills and supply chains needed to build the homes the country needs.
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