The latest figures from the Ministry of Housing, Communities and Local Government have revealed a continued slowdown in England’s planning system, with both applications and decisions declining year-on-year.
Between October and December 2024, district-level planning authorities received 79,000 applications for planning permission, marking a 7% drop compared to the same period in 2023.
Decisions on planning applications also fell, with authorities ruling on 75,400 cases – another 7% decline from the previous year.
Of these, 64,900 applications were granted, down 6%, though the approval rate rose slightly to 86%, a one-percentage-point increase from the same period in 2023.
EXTENDED TIMEFRAME
Major developments, which require decisions within 13 weeks or an agreed extended timeframe, saw a marginal improvement, with 91% of applications processed within this window – an increase of one percentage point from the previous year.
However, only 19% of major applications were determined strictly within the statutory 13-week period, reflecting a slight decline of one percentage point.
Residential and commercial development applications bore the brunt of the slowdown.
Authorities granted 7,400 residential applications, a notable 10% fall from the same quarter in 2023, while approvals for commercial developments fell even further, down 13% to 1,500.
Householder development applications, which constitute a significant proportion of planning activity, also declined by 7%, with 37,800 decisions made – accounting for half of all determinations, a share unchanged from the previous year.
For the year ending December 2024, a total of 271,600 planning applications were granted across England, a 7% reduction from the previous year. Residential approvals followed the same trend, with 30,200 applications approved – again, down by 7% year-on-year.
DISAPPOINTING BUT NOT SURPRISING
Neil Leitch, Managing Director of Development Finance at Hampshire Trust Bank, expressed concern over the figures, calling the decline in planning decisions “disappointing but not surprising.”
Pointing to persistent resourcing challenges within local authorities, which have led to prolonged delays and greater uncertainty for developers, particularly those working on smaller sites, he says: “SMEs play a crucial role in delivering new housing, especially in regional markets where large housebuilders may overlook smaller, more complex sites.
“Their ability to move quickly and bring underutilised land into use is vital.”
CRITICAL CASHFLOW
But he adds: “Long delays in planning hit SMEs hardest – cashflow and timelines are critical at their scale, and they don’t have the luxury of sitting on sites indefinitely.”
While acknowledging efforts to improve efficiency within the planning system, Leitch cautions that meaningful change would take time.
He adds: “Further investment in planning is welcome, but the developers best placed to succeed in the current environment are those who plan ahead – submitting well-prepared applications, engaging with planning officers early, and adopting a proactive approach to navigating the system.”
