Planning approvals dropped by 9% to 61,500 between January and March 2025, compared to the same period last year, according to data from the Ministry of Housing, Communities and Local Government (MHCLG).
District level planning authorities in England received 90,700 planning applications, up 6%, but made 70,900 decisions, down 10%.
Grant rates rose to 87% of all decisions, up two percentage points.
Major applications saw 90% decided within 13 weeks or an agreed time frame, unchanged on last year, and 19% made within the statutory 13 weeks.
Authorities granted 7,000 residential applications, down 11%, and 1,500 commercial approvals, also down 11%.
Householder development decisions fell 9% to 36,200, making up 51% of all decisions.
In the year to March 2025, authorities granted 265,800 decisions, down 7% on the previous year.
Residential approvals dropped 8% to 29,300.
Neil Leitch, managing director of development finance at Hampshire Trust Bank, said: “A drop in planning approvals confirms what many developers have been seeing in practice.
“It supports recent Home Builders Federation data pointing to a 13-year low in approval levels and highlights the ongoing pressures within the UK’s planning system.
“Planning remains the biggest obstacle. Developers face delays, inconsistent feedback and limited engagement from under-resourced planning teams.”
Leitch added: “The system is not failing through lack of intent. It is failing through lack of capacity.
“We talk a lot about reform, but what developers need is delivery.
“That means local authorities equipped with the people, skills and systems to make timely, consistent decisions.
“Until then, even the best policy will struggle to translate into real-world impact.”
He said: “We know what the issues are. This is not about political direction. It is about giving the system the resources to function.
“Without that, housing output will continue to fall short of what is needed.”
