Good news for the UK housing market after months of headlines about affordability pressures and rising prices, there are now strong signs that housing supply could finally be turning a corner.

Fresh figures show planning applications for new homes jumped by almost 30% in the second quarter of 2025. In total, nearly 70,000 new homes were put forward, compared with just over 52,000 in the same period last year. That’s a big step up, and it suggests more developers are pressing ahead with projects to meet the UK’s growing housing needs.

Adding to that momentum, the Government has also announced ambitious plans to create as many as 40,000 new homes on surplus railway land over the next decade. This scheme, delivered through Platform4, aims to unlock unused sites across the country, helping to bring more affordable and well-connected housing into areas where demand is highest.

Why does this matter? Because the UK housing shortage has been a stubborn problem for years. Prices have kept climbing as supply has struggled to keep pace with demand. While the number of applications doesn’t translate into completed homes overnight, the rise is an encouraging sign that more stock could be on the horizon. If these projects move forward at scale, buyers could eventually benefit from more choice and, hopefully, a little less competition when bidding for properties.

There are also wider benefits. More homebuilding means more construction jobs, investment in local infrastructure, and opportunities for first-time buyers who often feel locked out of the market. Using railway land is a clever approach too, as these sites are often close to transport links, making new neighbourhoods practical as well as affordable.

Of course, some challenges remain. Planning approvals can be slow, and not every application makes it through the system. Building at scale also depends on materials, labour, and funding lining up at the right time. But the shift in activity is hard to ignore, and it adds a welcome dose of optimism to the property market outlook for the rest of 2025.

This uptick in planning applications and the launch of major initiatives like Platform4 are signs that solutions to the housing shortage are gathering pace. It won’t solve everything overnight, but it does suggest that the conversation is moving from pressure to progress.

Key Takeaways

1.        Planning applications for new homes jumped nearly 30% in Q2 2025, hitting almost 70,000.

2.        Government plan could add 40,000 homes on surplus railway land over the next decade.

3.        More housebuilding could ease price pressures and give buyers more choice.

4.        Wider benefits include jobs, infrastructure investment, and support for first-time buyers.

Challenges remain, but momentum is building in the UK property market