Between April and June 2024, planning authorities in England received 84,400 applications, a 9% drop from the previous year. Only 70,200 of these were approved, down 7% from 2023. Fewer projects are even reaching the planning stage, and fewer are being approved – despite a housing shortage that’s impossible to ignore.
Though 86% of applications were approved, the sharp decline in submissions speaks volumes. Developers are quickly losing interest in jumping through the hoops, which is hardly surprising, given the infamously slow and restrictive UK planning system.
“One of the biggest hurdles developers face is the sheer time it takes to get applications through the system. Local authorities are understaffed, which drags out the process, and even when applications do make it through, they’re often bogged down by appeals and consultations – despite the clear need for more quality housing across the UK.” – Chris Lucas, Consultant, tdm recruitment
The drop in approvals is worsening the housing crisis, pushing up prices and putting homeownership out of reach for many. Meeting the demand will require larger developments, yet projects of 100-500 units take 2.5 years on average to clear local authority review, and larger ones take 5 years. Even single new homes can be tied up in planning for 7-9 months. Delays like these have direct economic costs, especially for a country where construction is closely tied to growth.
Large-scale housing schemes, by which we mean those with ten or more units, are essential to meeting housing needs. Yet these developments dropped by 12% in the second quarter of 2024, reaching just 56,488 units. Smaller projects like self-builds and non-residential conversions account for the rest but aren’t enough to bridge the gap left by reduced large-scale development.
In London alone, planning approvals have seen a sharp decline, with a significant 20% drop in applications. This is particularly alarming given the city’s ever-pressing demand for housing. It’s almost as if there’s a conspiracy to keep potential residents at bay. Notably, 80% of London boroughs have the highest refusal rates in the country, with at least half of all submissions being rejected. Not to mention that over the past 13 years, London has cycled through 16 different housing ministers, creating a turbulent landscape where political manoeuvring often overshadows actual housing needs.
Sir Keir Starmer has pledged to confront nimby activists who are obstructing new housing developments and proposed planning passports aimed at streamlining the approval process for projects. The housing crisis may well hinge on the effectiveness of such proposals in breaking down the resistance to new projects and ensuring that homes can be built where they are needed most.
