Planning Rejections as Housing Crisis Deepens 

Despite the ongoing housing crisis in the UK, London and the Southeast of England have the highest proportion of developer planning applications in the country, according to new data. Councils have warned they run the risk of going bankrupt in the next year. 

Property data provider Search Acumen has found that at least one in two planning submissions for major housing developments are disproportionately in London, the Southeast and the East of England amid reports of homelessness on the rise. As property prices soar, working Brits are struggling to get on the property ladder due to housing shortages and lack of affordability. Search Acumen has analysed planning application records from the Department of Levelling Up Housing and Communities (DLUHC) for 2023.

A total of 15 local planning authorities refused half of planning submissions for residential development last year, 80% of which are based in the capital and surrounding areas. Liberal Democrat run Mole Valley in Surrey had the highest amount of refusals for housing out of any local authority in the UK, with 77% of decisions refused. Mole Valley neighbours the Surrey Hills, which is a designated Area of Outstanding Beauty – with an average house price of £565,00o. Building on areas such as the Surrey Hills requires an order from Natural England under section 82 of the CROW Act for the purpose of conserving and enhancing the natural beauty of the landscape.

12 out of 15 local authorities who refused applications were based in London and the East, meaning housebuilders based in those areas have the lowest chance of obtaining a successful planning application. The analysis also points to councils were no one party has a majority to have a 60% higher likelihood of refusal due to political instability. There is a greater need to ‘protect the land due to its scarcity’, according to Andrew Lloyd, Director of Search Acumen.

The ONS have released stats showing that the UK population may increase by 6.6million people by the year 2036, with a prediction of a further 5.7million homes needed over the next 15 years to make up for the deficit. Meeting this target would require building an average of 382,000 homes per year – which is above the current rate of 240,000.

Lloyd 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 Southeast, 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.”

“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 2^nd 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.”

The news comes as nearly one in 10 councils in England have warned they will go bankrupt in the next 12 months as authorities are having to plan widespread services cuts, above-inflation council tax rises and across-the-board increases to resident charges.

For larger developers, the places where they are most likely to be greeted with YIMBYs (Yes In My Back Yard) and get planning permission granted reside broadly in the Midlands and the North.

Lloyd has said:

“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 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.”

Source: Todays Conveyancer