Planning slowdown threatens housing delivery

Planning applications across England and Wales have fallen to their lowest level in more than a decade, raising concerns over the strength of the UK’s future housing pipeline despite ongoing planning reforms aimed at boosting housebuilding.

New analysis from Landmark Information Group shows around 689,000 planning applications were submitted during 2025 – the lowest annual total recorded since 2012. The national application rate also fell to a record low of 995 applications per 100,000 people.
The figures suggest the slowdown is being driven less by planning refusals and more by fewer schemes coming forward in the first place. Average approval rates remain high at around 86%.

New build applications also continue to weaken, falling by 5.5% year-on-year to 198,240 applications during 2025, despite the Government’s ongoing focus on increasing housing supply.

PLANNING UNCERTAINTY

At the same time, uncertainty within the planning system appears to be increasing. Landmark’s analysis found that 19% of applications are now submitted with a decision still unknown – the highest proportion on record – highlighting growing complexity and delays within the process.

The slowdown has been particularly visible in smaller discretionary projects. Applications for extensions and home improvements have fallen sharply since the post-pandemic surge in 2021, with extension applications now down 44% from their peak.

However, alterations and conversions have continued to grow, rising by 4.9% compared with 2024 and now accounting for almost 40% of all planning activity. The figures suggest developers and homeowners are increasingly favouring refurbishment and lower-risk schemes over larger-scale developments.

The data comes as the Government continues reforms to the National Planning Policy Framework (NPPF) alongside its target to deliver 1.5 million new homes over the next Parliament.

STRUCTURAL CHALLENGES
Josh Rains, Managing Director of Landmark Geodata
Josh Rains, Landmark Geodata

Josh Rains, Managing Director of Landmark Geodata, says: “While approval rates remain strong, fewer applications are coming forward in the first place.

“That points to deeper structural challenges in the planning system, particularly around uncertainty and the time it takes to reach a clear outcome.

“Planning reform has the potential to address these issues, but success will depend on improving decision-making earlier in the process.

“Better use of data can help identify risks sooner, make applications clearer and give developers greater confidence before submitting applications.

“Reform may improve the mechanics of planning, but without the right planning capacity, specialist expertise and the effective use of data and technology, the system will continue to face friction.”

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