Data from the Ministry of Housing, Communities and Local Government (MHCLG) estimates that new home construction starts in England rose 18% year on year in the 12 months to the end of September, but the number of completions and planning approvals both fell.

The figures show that construction started on an estimated 117,980 dwellings in the period, up from the 99,570 in the previous 12-month period.

The figures represent one of the first signs of life following Labour’s planning reforms over the past year, although new starts were still down 29.1% from the 166,480 starts in 2023.

In Q3, construction started on an estimated 29,620 new-build dwellings in England, unchanged from Q2 but 3% higher than in the same period of 2024.

The largest percentage increases from the previous year were in the East Midlands (43%) and Yorkshire and the Humber (33%).

However, new-build completions in England are estimated to have fallen 10% year on year to 141,290 in the 12 months to the end of September, while new home planning permissions fell 15% year on year, from 245,000 to 208,000.

Housing secretary Steve Reed said: “I said I will build 1.5 million homes and I meant it. Thanks to our changes to planning laws, we’re now seeing the green shoots of recovery, with an 18% increase in work starting on new homes compared with the previous year.

“We will keep on streamlining the planning system and investing in social housing so we can end the housing crisis we inherited and give everyone the chance to live in the home they dream of.”

Earlier this week, research from the Centre for Policy Studies revealed that housing starts across London fell 72% in the 2024-25 financial year, to just 4,170 units.

Last month, S&P Global’s UK Construction Purchasing Managers’ Index revealed that construction activity for housing fell to its lowest level since May 2020, with a housing activity reading of 35.4.