In the final three months of last year, authorities granted 64,900 decisions, down 6% from the same period 12 months ago. 

Between October and December, local planning bodies received 79,000 applications for planning permission, down 7% from the same quarter a year earlier.

The figures will be disappointing for the government, which has pledged to build 1.5 million homes over the next five years. This follows around one million homes built over the previous five years. 

Earlier this month, the housing department introduced the Planning and Infrastructure Bill to Parliament. 

It proposes to boost compulsory purchase order powers and streamline planning committees, among a range of measures. 

It also reiterates the government’s pledge to add 300 local planning officers, which will cost £46m. 

Hampshire Trust Bank managing director of development finance Neil Leitch says: “A decline in planning decisions is disappointing but not surprising.  

“Local authorities remain under strain, and many are still struggling with resourcing challenges.  

“For developers, particularly those working on smaller sites, this means longer timelines, greater uncertainty, and delays to projects that are ready to progress. 

Leitch adds: “Smaller builders play a crucial role in delivering new housing, especially in regional markets where large housebuilders may overlook smaller, more complex sites.  

“Their ability to move quickly and bring underutilised land into use is vital.  

“But long delays in planning hit smaller builders hardest — cashflow and timelines are critical at their scale, and they don’t have the luxury of sitting on sites indefinitely.

“Further investment in planning and efforts to improve efficiency are welcome, but real change will take time.”