South of England faces housing shortage as schemes rejected

South of England faces housing shortage as schemes rejected


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Map of the United Kingdom showing a travel route with pins and labels.
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There’s a growing divide between the south of England and the rest of the country when it comes to house building levels.

This is despite the south attracting the highest population growth and creation of new jobs.

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That’s the result of an analysis by Dane Westwood of construction and development bond service CG Bonds.

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He claims that Northern and Midlands councils are now delivering far more new homes than the South, with Southern planning departments rejecting significantly more applications.

Top 10 Housebuilding Authorities (2024–25)

Local authorities building the most homes per 1,000 dwellings

RankLocal AuthorityNew builds per 1,000 homes
1Tewkesbury31.23
2Mid Suffolk27.11
3South Cambridgeshire23.65
4Telford and Wrekin22.47
5Newham20.71
6Salford20.55
7Milton Keynes19.17
8Vale of White Horse18.61
9Barking and Dagenham18.60
10Lewisham18.09

While a small number of Southern and London authorities still appear in the top 10, the broader trend shows Northern and Midlands councils driving most of England’s housing growth.

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Westwood comments: “High build rates tend to reflect delivery momentum rather than isolated approvals.

“Once schemes complete smoothly, developers are more likely to scale up activity locally, increasing output without needing larger or riskier projects.”

The divide becomes sharper when examining planning decisions.

Several London authorities recorded authorities recorded the highest refusal rates in 2024, including:

  • Havering: 63%
  • Newham: 61%
  • Croydon: 61%

While authorities such as Newham appear both among the top housebuilders and the highest refusal-rate councils, this reflects large regeneration schemes approved years ago that are now being built out.

Refusal rates provide a clearer signal of future supply, highlighting how difficult it is for new developments to enter the system today.

By comparison, Westwood claims many Northern authorities operate with much lower refusal rates, giving developers more certainty, speeding up the delivery process.

He says the North is increasingly becoming England’s prime location for new housing, while the South’s restrictive planning environment risks deepening the national housing shortage.

If this pattern continues, developers may prioritise Northern and Midlands projects, while Southern markets face worsening shortages driven by limited approvals.

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