The top 15 local planning authorities in the UK for refusing new major housing developments have been identified. Leading property data provider, Search Acumen, has found that the majority of councils refusing at least 1 in 2 submissions for major new housing in 2023 are disproportionately in London, the South East, and East of England.
Reviewing planning permissions refused for all major residential developments of more than 10 units in 2023, where at least 10 applications were submitted, Mole Valley emerged as the top UK local planning authority with a refusal rate of 77%. The Surrey district, run by the Liberal Democrats, is located near the Surrey Hills, a designated Area of Outstanding Beauty, with an average house price of £565,000.
Twelve of the top 15 local planning authorities that refused at least 50% of major housing developments were in London, the South East, or the East of England. This means housebuilders in these areas have the lowest chance of obtaining a successful planning application in the country. The analysis also indicates that councils without a majority party have an increased likelihood (60%) of refusing major new housing developments, as political instability hinders development despite the national housing crisis.
Population projections released this year by the Office for National Statistics show the UK growing by 6.6 million people from 2021 to 2036, suggesting that at least 5.7 million homes will need to be built in England over the next 15 years to meet demand. This equates to building an average of 382,000 homes per year, 60% higher than the current rate of 240,000 homes built in 2022-23.
Andrew Lloyd, director of Search Acumen, said: “Where the housing pressure is the greatest is where opposition to new housing is the highest. This research shows that overwhelmingly the wealthier parts of the country, in particular the commuter belts in the South East, is where the greatest amount of opposition comes from to new housing. With more land being used for development, voters and politicians alike are becoming more protective of land due to its scarcity.”
He continues: “Councils where no one party is in control can mean planning applications can take a more political lens when considered for approval, ultimately finding consent harder to achieve. Local elections on May 2nd for these areas up and down the UK will be key to removing political stalemates through majority wins, creating a better chance for local authorities to be able to commit to new housing projects and the associated town investment that often goes hand in hand.”
This comes as nearly one in ten councils in England have warned they will go bankrupt in the next 12 months as authorities plan widespread service cuts, above-inflation council tax rises, and across-the-board increases to resident charges, according to a survey. The local elections yesterday were seen as critical to making progress.
For larger developers, the places where they are most likely to receive planning permission reside broadly in the Midlands and the North. Twelve out of fifteen local planning authorities that had a 100% approval rate in 2023 for more than ten major developments were outside London and the South East.
Of the 15 councils with a 100% record for large development planning approvals, the majority (60%) were Labour-run.
Andrew adds: “YIMBY areas are places that either want or need the investment, marking them as high growth areas for the future. If we take Bexley, for example, this area has been opened up thanks to the Elizabeth Line, actively looking for more investment and being pro-development as a result. Whilst there is no hard and fast rule, Brent is also an area for London that has had a housing boom. Located close to Wembley, it has seen a plethora of investment pour in with a high need for more affordable housing, making planning approvals more likely.”
