Granted planning applications fall in Q1 2025 despite pledge to remove red tape

According to the latest planning data from the Ministry of Housing, Communities and Local Government, district level planning authorities in England received 90,700 applications for planning permission in Q1 2025, up 6% from the same quarter a year earlier.

For the same period, they decided 70,900 applications for planning permission, down 10% on Q1 2024. Authorities granted 61,500 decisions in Q1 2025, down 9% on Q1 2024. Figures show that the rolling annual total of granted planning permissions has been falling since Q1 2019 (327,000). 

Kelly Boorman, National Head of Construction at RSM UK, said: “The latest planning application data indicates that despite the government’s pledge to remove red tape and accelerate planning decisions, businesses are yet to feel any impact of planning reform. In addition, the rolling total of granted planning permissions shows that planning permission for housing units has been on a downward trend since 2019, which is contributing to market uncertainty and challenges reaching mandatory housing targets. Consumer demand for home ownership has also weakened, with the share of high loan-to-value mortgages rising to the highest level since 2008 in Q1 2025.

“Housebuilders therefore need more visibility and mobilisation of planning reforms in order to forecast demand and avoid stockpiling units to preserve margins. However, this week has brought some positivity for SME housebuilders and developers, following the government’s announcement of the new National Housing Bank which will unlock new public and private sector investment to accelerate delivery by supporting SMEs with new lending products and infrastructure finance.”

She added: “But, in order to deliver housebuilding of this scale, the government needs to address ongoing challenges with planning reform, infrastructure and devolved decision making to boost subdued housing activity. We’re expecting the Infrastructure Strategy imminently, which must prioritise fulfilling planning reform pledges, mobilising projects and allocating resource. However, it’s also key to push for collaboration between industry, local authorities and communities to meet local housing needs and ease underlying tensions.”