Savills analysis shows 204,500 homes were completed in England in the year to Q1 2026.
This is well below the annual requirement of c.370,500 and the level required to improve affordability.
The delivery pipeline is also constrained, with only 186,000 homes gaining consent in the year to March 2026 – 45% below the 2017 peak.
Planning applications numbers have though picked up following the 2024 revisions to the National Planning Policy Framework (NPPF). The impact of the revised NPPF is also being felt elsewhere, with the reintroduction of mandatory housing targets giving rise to shortfalls in both local authority land supply positions and Housing Delivery Test results.
The shortfall in both of these metrics will favour proposals that comply with sustainable development credentials.
With local authorities now expected to progress plans under the new, faster plan-making system, higher housing targets will become embedded in adopted local policy over the next three years. In the meantime, the current planning environment represents a clear window of opportunity for schemes seeking to secure either an allocation or planning consent.
Local authorities across England have an average housing supply of 4.4 years, below the 5-year standard requirement and the comparative figure in 2024, which was 6.4 years. There is some variation across regions, with the impact being the most pronounced in less affordable markets.
With lower land supply positions, a higher volume of planning appeals are being allowed. 62 local authorities (21%) have had a lack of five-year land supply confirmed at appeal over the past year. Amongst those 62 local authorities, 22 were found to have less than 3 years supply.
Higher housing targets are also impacting the outcomes of the Housing Delivery Test (HDT). Savills projections show that 166 (55%) of local authorities in England would pass the HDT in 2026, down from 65% the previous year. Meanwhile, 91 LPAs (30%) are projected to have delivered less than 75% of their requirements, and face presumption in favour of sustainable development for decision making as a result.
The impact of housing targets is also being felt due to the low number of up-to-date local plans at the end of the transitional period. As of March 2026, one year on from the transition deadline, only 90 local authorities have an up-to-date local plan in place, covering approximately a third of authorities in England.
Plan production is up on last year, with 12 local authorities adopting local plans in the first quarter of 2026 albeit many of these progressed under lower housing requirements. As a result, the total housing requirement across all adopted plans is currently 225,369, approximately 39% below the volume of homes needed under the Government’s standard method calculation.
Momentum is building though as new local plans emerge. 51 local authorities are currently at the Examination stage of their plans, with 41% submitted in the last 12 months, while a further 9 authorities have published emerging plans. This suggests the rate of local plan adoption is likely to increase over the coming year.
Hamish Simmie, Associate Director in Savills Research, said: “While planning reform is beginning to reshape local housing targets and plan-making behaviour, it has not yet translated into the scale of delivery needed nationally. In the short term, the combination of rising housing requirements, weak land supply positions and out of date local plans is likely to create a window of opportunity for well-positioned planning applications.”
David Jackson, Head of Planning and Savills Earth at Savills, adds: “It remains to be seen how effectively the new strategic planning system can overcome the misalignment in timing and geography of current infrastructure planning. Nevertheless, the new principal authorities and Spatial Development Strategies will at least bring together requirements for development over a larger area, enabling the case to be made for infrastructure investment more effectively. While it is unlikely to provide a short-term fix, in the longer term, strategic planning should underpin a more joined-up approach to delivering jobs, infrastructure and homes.”
For more information, read the full report here.
