The UK housing market is entering a critical new phase as the government’s ambitious target to deliver 1.5 million new homes faces growing challenges.
So what does the slowdown in planning approvals and housing completions mean for investors—particularly Turkish buyers looking at the UK market?
Historically, the UK property market has been defined by structural undersupply, where housing demand consistently outpaces new construction. Recent data suggests that this imbalance is likely to persist in the near to medium term.
At Piccadilly Estates, we have analysed the latest figures reported by The Independent and assessed what these developments could mean for your investment strategy.
The 1.5 Million Homes Target and the Current Reality
The current government committed to building 1.5 million new homes by the next general election—equivalent to approximately 300,000 homes per year.
However, the latest figures from the Office for National Statistics (ONS) and Energy Performance Certificate (EPC) data indicate that meeting this target will be extremely challenging in the short term.
Key Figures:
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Actual completions: Around 204,000 homes were built this year—well below the annual target of 300,000.
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Decline in planning permissions: Planning approvals for new developments have fallen by 15%, reaching their lowest level in 12 years. In the 12 months to September, permissions were granted for just 208,000 units.
A “Broken” Planning System and the Government’s Response
Government officials have described the situation as the result of an inherited “broken planning system”, acknowledging that reform will take time.
Housing Secretary Steve Reed has stated that planning rules are being reviewed, with a renewed focus on brownfield sites to accelerate development and unlock urban regeneration opportunities.
ŒWhat Does This Mean for Property Investors?
While constrained supply may appear negative at first glance, it often creates clear advantages for property investors:
Capital Growth for Existing Stock
When new housing supply falls short of demand, the value of existing and near-completion properties tends to rise. This is a fundamental market dynamic: limited supply combined with sustained demand places upward pressure on prices.
Stronger Rental Yields
Housing shortages make rental accommodation harder to secure, which can lead to rising rental values. For buy-to-let investors, this translates into stronger and more competitive rental yields.
Increased Importance of Project Selection
As planning processes become more complex, project quality and delivery certainty become critical. Properties in regeneration areas and government-supported zones may offer strong upside, but investors are increasingly prioritising completed or well-secured developments with reliable developers and clear timelines.
Invest with Confidence with Piccadilly Estates
Navigating a changing regulatory landscape and shifting market conditions in the UK requires local expertise and up-to-date market insight.
At Piccadilly Estates, we closely monitor housing supply trends and focus on identifying opportunities in London, Manchester, and other high-growth regions across the UK.
In a market defined by limited supply and resilient demand, UK property continues to demonstrate its strength as a long-term investment asset.
Considering property investment in the UK?
Now is the time to position yourself strategically in a market where scarcity supports value growth.
Contact Piccadilly Estates to explore opportunities tailored to your investment goals and build a resilient, future-focused property portfolio.
