Summary
Planning application approvals in England dropped 7% in 2024 compared to the previous year, with a corresponding 8% decrease in applications received. Small-volume housing developments experienced a significant decline, impacting local house builders. While December 2024 saw stronger performance than anticipated, concerns remain about the housing market’s future amid changing regulations and fees.
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** Main Story**
So, 2024 wasn’t exactly a banner year for England’s planning system. In fact, we saw a noticeable slowdown. Planning application approvals dipped by a not-insignificant 7% compared to 2023, and get this, the number of applications received also dropped, by about 8%. These figures, fresh from the Ministry of Housing, Communities & Local Government on March 20, 2025, really do paint a picture, don’t they? A picture of a construction industry maybe facing a bit of a headwind.
And this dip, it has to be said, is particularly worrying, given the government’s big push for a real building boom. I mean, you’ve got to ask: are current policies actually working? Or are market conditions just too tough right now?
Small-Volume Housing: A Big Concern
Now, here’s a real red flag: the Federation of Master Builders (FMB) is particularly concerned about the sharp decline in planning applications getting the green light for smaller housing developments – you know, nine units or fewer. Why is this so crucial? Well, this segment’s really driven by those small, local house builders that we all know are important to the community. The FMB’s chief executive, Brian Berry, didn’t pull any punches, expressing real disappointment, highlighting the urgent need for a more diversified housing market. I think he’s right. When you see fewer small-volume projects, that suggests that these builders are facing some real hurdles, and let’s be honest, things like access to finance, limited land availability, and regulations, they’re just getting more and more complex these days. I remember working with a client a while back, a small developer, and the sheer paperwork they had to wade through was just insane.
Regional Differences and a Late Surge
What’s interesting is that this decline in planning applications didn’t just hit one area; it affected pretty much every region in England. Although, I should say, the impact varied. Wales actually saw the smallest drop, while the South East, well, they took the biggest hit, comparatively.
But here’s a twist: December 2024 actually saw a stronger performance than anyone anticipated, application volumes actually beat all the forecasts. Some regions even saw an increase in applications compared to December 2023, which is kind of a hopeful sign. Of course, the big question is this: is this late surge a real turning point, or just a temporary blip on the radar? Time will tell I guess.
Building Regulations: A Game Changer?
You know, this decline in planning applications also lines up with some pretty significant changes to UK building regulations. Specifically, the Building Safety Act 2022, which, if you remember, went live back in October 2023. These changes? Pretty huge. They’ve introduced new dutyholder roles, stricter building control systems, and mandatory reporting of any incidents, I mean this impacts everybody involved in a construction project.
While we haven’t seen the full impact of these changes yet, it’s pretty clear they might be contributing to this slowdown in planning applications. Think about it: developers and builders need to adjust to all these new requirements. The added complexity and the potential costs? It’s not hard to see how they could deter some from starting new projects, particularly smaller developers, I think. One conversation I had recently, the feeling was very much “oh great, more red tape!”
Looking Ahead – The Uncertainty
So, where do we go from here? Honestly, the future of England’s housing market is looking pretty uncertain right now. The decline in applications, combined with those regulatory changes and application fee hikes, it’s just a really complex situation for developers and builders to navigate. It feels like it’s almost harder to build houses now.
It’s crucial, I think, for policymakers to really listen to the concerns voiced by industry groups like the FMB. We have to think about ways to support those small-volume housing developments, you know? Streamlining the whole planning process, for starters, and providing clearer, simpler guidance on these new regulations could really make a difference. That could encourage more applications and contribute to a healthier, more diverse housing market.
For now, as of today, March 30, 2025, all the data points towards a concerning situation. But, obviously, the future depends on how effectively we tackle these challenges. And I think we can get it right, if we work together.
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