Planning applications reach record low: Landmark Mortgage Finance Gazette

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Planning applications remain at their lowest level in over a decade, Landmark data reveals.

Landmark’s analysis shows that planning activity has declined each year since its post-pandemic peak in 2021, which it says reflects both ongoing structural constraints within the planning system as well as wider economic and affordability challenges affecting developments.

Data shows that approximately 689,000 planning applications were submitted in 2025, the lowest annual total recorded in Landmark’s dataset since 2012, while the national rate fell to a record low of 995 applications per 100,000 people.

Despite this lower overall activity, average grant rates remain high at around 86%, indicating that the slowdown is being driven less by planning refusals and more by fewer applications coming forward in the first place.

This can be seen with new build applications, which have continued to decline, falling 5.5% year-on-year to 198,240 applications in 2025.

Landmark says the figures suggest that developer activity remains cautious, with higher costs, viability pressures and ongoing uncertainty continuing to weigh on larger-scale expansionary development.

Data also shows that 19% of applications are now submitted with a decision still unknown, the highest proportion on record.

It suggests this is due to a planning environment where risk and complexity are becoming more pronounced, particularly for smaller-scale developments.

Meanwhile, applications for extensions and home improvements have fallen sharply from their 2021 peak, with extension applications alone down 44% compared to post-lockdown highs.

In contrast, alterations and conversions increased by 4.9% compared with 2024 and now account for almost 40% of all planning activity.

Evidence from local authorities further highlights the pressures within the system. In December, the Ministry for Housing, Communities and Local Government released data showing that 93% of Local Planning Authorities have identified skills gaps amongst specialist planning staff, demonstrating the challenge at the local authority level.

Landmark highlights that the government’s planning reforms are a significant opportunity to unlock delivery and reverse current declining trends.

While the updated National Planning Policy Framework (NPPF) aims to speed up decisions, the data shows that the real barrier sits earlier in the system.

Landmark managing director of Geodata Josh Rains says: “While approval rates remain strong, fewer applications are coming forward in the first place. That points to deeper structural challenges in the planning system, particularly around uncertainty and the time it takes to reach a clear outcome.”

“Planning reform has the potential to address these issues, but success will depend on improving decision-making earlier in the process. Better use of data can help identify risks sooner, make applications clearer and give developers greater confidence before submitting applications.”

“However, delivery will ultimately depend on how effectively the three core pillars of the planning system, process, people and technology, work together.”

“Reform may improve the mechanics of planning, but without the right planning capacity, specialist expertise and the effective use of data and technology, the system will continue to face friction. If these elements can be brought together more effectively, the planning process can operate with greater certainty and support long-term housing delivery.”