Residential planning approvals slump in first quarter

The number of major residential planning decisions granted in the first three months of 2023 fell by 16% to its lowest first quarter figure for over 10 years, according to the latest official data.

The figures from the Department of Levelling Up, Housing and Communities also show that the reduction in approvals is not just down to a continued slump in the number of applications, but also that councils are approving a lower proportion of applications than at any point since 2015.

The numbers showed that the proportion of major residential applications approved fell to 79% in the January-March quarter, the first time it has slipped below 80% since July-September 2015.

In total 1,037 major residential applications were granted in the quarter, down 15.9% from the same period in 2022, and down 11.1% quarter-on-quarter. The figures showed that 4,221 applications for major resi schemes - more than 10 homes - were approved in the 12 months to March, 11.4% down on the previous year. This marks the lowest 12-month figure since the data series began at the start of 2013.

The numbers come amid widespread concern both about the health of the housing market in the wake of last autumn’s mini budget, which is likely to be affecting the flow of applications, but also of the functioning of the planning system, given political pressures and a widely acknowledge resourcing crisis.

The last 18 months has seen around 50 authorities put their local plans on hold amid uncertainty over the direction of national planning policy, while local authority planning departments have seen their budgets cut deeper than any other part of local government over the last decade.

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Today’s figures also revealed declines in decisions and approvals for minor residential decisions and for planning applications more broadly. The DLUHC data release said that between January and March, district level planning authorities in England received 96,000 applications for planning permission in total, down 13% from the same quarter a year earlier, and decided 87,200 applications for planning permission, down 9% from the same quarter a year earlier.

The release said 75,000 decisions were granted, down 11% from the same quarter a year earlier, equivalent to 86% of decisions, down one percentage point from the same quarter a year earlier.

The figures did however show some improvement in the speed of decision-making, with local authorities making 88% of major residential decisions with 13 weeks of the agreed time, up from a low of 81% seen just over a year ago.

Earlier this year the government consulted on increasing planning fees by 35% for major applications in order to help deliver revenue to ease the recruitment crisis in local authority planning departments.