Annual housing supply in England dropped to 208,600 net additional dwellings in 2024-25, down 6% from the previous year, according to Ministry of Housing, Communities and Local Government (MHCLG) data.
This included 190,600 new build homes, 17,710 from changes of use, 3,850 from conversions, and 1,080 from other gains like caravans and houseboats.
There were 4,630 demolitions.
Of the new builds, 304 were delivered through permitted development rights.
Change of use added 7,681 homes this way, with 5,154 from former offices, 462 from agricultural buildings, 94 from light industrial, 1,048 from commercial, business and service use, and 923 from other non-domestic buildings.
Demolitions under permitted development rights accounted for a loss of 349 homes.
Between 1st April and 9th November 2025, an estimated 124,800 net additional homes were delivered in England.
From the start of Parliament on 9th July 2024 to 9th November 2025, the figure was 275,600.
Simon Dekker, senior relationship director at Paragon, said: “The latest government data showing a 6% drop in net additional dwellings – down from 221,000 last year to 208,600 – is yet another reminder of the urgency for Government to remove barriers to housing delivery.
“SME developers play a pivotal role and take pride in creating diverse, well-designed communities yet face persistent challenges, particularly around planning.
“Under-resourced local authorities, lengthy approval timelines and complex obligations such as Section 106 agreements and biodiversity requirements are creating bottlenecks that slow progress and drive-up costs.”
Dekker added: “Next week’s Budget is a critical opportunity for Government to show it values the contribution SMEs make to housing supply and economic growth.
“Fiscal measures that speed up delivery could include targeted funding to boost planning capacity, tax incentives for small-site development or support to offset infrastructure and compliance costs.
“As a FTSE 250 lender, Paragon has helped deliver over 13,000 homes since post-Brexit, and we see first-hand the ambition SMEs have to increase housing output, but their hands are tied.”
He said: “With completions now at their lowest level in seven years, this Budget must send a clear signal that Government is committed to creating the conditions SMEs need to help meet the UK’s housing targets.”
