The number of planning applications submitted to district-level planning authorities in England fell by 7% between October and December 2024 compared to the same period in the previous year.
According to newly released data from the Ministry for Housing, Communties and Local Government (MHCLG), 79,000 applications for planning permission were received in the final quarter of 2024, reflecting a slowdown in development activity.
During this period, planning authorities made decisions on 75,400 applications, also down by 7% from the same quarter a year earlier.
Of those, 64,900 applications were approved, representing an annual decline of 6%.
However, the approval rate improved slightly, with 86% of applications granted, up by 1% from the previous year.
Performance on major applications showed a mixed picture. Authorities decided 91% of major applications within 13 weeks or the agreed time limit, an increase of 1% compared to the previous year.
However, only 19% of major applications were decided within the statutory 13-week period, marking a 1% decrease.
Residential and commercial developments also saw a downturn in approvals.
Authorities granted 7,400 residential applications in the fourth quarter of 2024, a 10% decline from the previous year.
Approvals for commercial developments fell even further, with only 1,500 applications granted, a 13% drop year-on-year.
Householder development applications, which include projects such as home extensions and modifications, remained a significant part of planning activity.
A total of 37,800 applications were decided in the quarter, down 7% from the same period in 2023.
These applications accounted for 50% of all decisions, a figure that remained unchanged from the previous year.
For the year ending December 2024, authorities granted 271,600 planning applications, a decrease of 7% compared to the previous 12 months.
Residential approvals also fell, with 30,200 applications granted, reflecting the same 7% decline from 2023.
Neil Leitch, managing director of development finance at Hampshire Trust Bank, said: “A decline in planning decisions is disappointing but not surprising.
“Local authorities remain under strain, and many are still struggling with resourcing challenges. For developers, particularly those working on smaller sites, this means longer timelines, greater uncertainty, and delays to projects that are ready to progress.
“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. But 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.”
He added: “Further investment in planning and efforts to improve efficiency are welcome, but real change will take time.
“Right now, the developers best placed to succeed are those who plan ahead – submitting well-prepared applications, engaging with planning officers early, and taking a proactive approach to navigating the system.”
