New data from the Ministry of Housing, Communities & Local Government shows that the last quarter of 2024 saw a drop of 7% in applications
District-level planning authorities gave data on planning applications in Q4 2024.
The final quarter of the year saw 79,000 applications, down 7% from Q4 2023.
Granted permissions also declined
Decided applications reached 75,400 in Q4 2024, again dropped by 7% from the previous year’s final quarter.
The number of granted decisions also dropped by 6% from the same quarter in the previous year, to 64,900.
91% of major applications saw a decision within 13 weeks, or within the agreed time. This marks an increase of 1 percentage point from the previous year’s Q4.
7,400 residential applications were granted, down 10% from Q4 2023, while 1,500 commercial developments were granted, down by 13% from Q4 2023. 37,800 householder development applications were decided, down 7% from Q4 2023, and accounting for 50% of all decisions made in the quarter.
In the whole of 2024, 271,600 decisions were granted by the end of 2024, and 30,200 residential applications were granted, in both cases a decline of 7% from the previous year.
There has been an overall decline in planning applications since 2009
Figures published in the update show that the number of applications received, decided, and granted, all suddenly dropped in 2009 following the economic downturn in 2008, and have struggled to regain momentum ever since.
Another dip in 2020 due to the COVID-19 pandemic has been rectified since, but the decline is still noticeable.
Brian Berry, chief ceecutive of the Federation of Master Builders, said: “It is deeply disappointing to see the number of planning applications granted for developments of 9 or fewer units in 2024 were down significantly on the previous year, by almost 2,000. This means a mere 9% of homes delivered will be from the nation’s small local house builders – an increasingly dwindling part of the sector. The Housing Minister has been clear about the need to diversify the housing market away from a reliance on a small number of high-volume builders, yet today’s figures show more needs to be done.
“What sets small, local builders apart is that they come from the very communities they build for, delivering high-quality projects using local skills. But we know from the FMB’s House Builders’ Survey in December 2024 that the planning system is the number one barrier preventing SME builders from building. We need to see more resources allocated to local authority planning departments, dedicated to helping SME builders navigate the challenges of planning system, and allowing them to deliver the homes we need.”
The report can be read in full here.
