The number of residential planning applications dropped to 60,986 in 2022, the lowest annual total since 2012, when 59,013 applications were approved, rejected or still awaiting a decision.
According to data by development site sourcing specialist Searchland, the proportion of applications that were successful versus those that were rejected currently sits at its lowest level since 2008 – 32,956 residential applications were approved in 2022, while 12,226 were rejected.
The year also saw the fifth consecutive year-on-year decline, with a 5% fall in planning applications submitted versus the 64,419 seen in 2021.
The success rate of 73% in 2022 was down from 75% over the previous three years, and was also the lowest success rate seen since 2008 when, in the midst of the financial crisis, just 68% of all applications were approved.
Mitchell Fasanya, co-founder and chief executive of Searchland, said: “Despite the residential property market benefiting from a pandemic-inspired boom, the number of planning applications made has been in steady decline in recent years.
“This is down to a number of factors, including the higher cost of materials and labour shortages, which have impacted developer abilities to execute efficiently. Not to mention the market uncertainty that has developed following a string of interest rate hikes which will have seen many developers tread with greater caution in anticipation of a reduction in market values.
“While less significant, the recent Help to Buy deadline is also sure to have had an influence, with many developers pausing to re-evaluate where, with what and to whom to target their efforts.
“Although the market has stood firm so far, it will be interesting to see how this trend materialises over the coming year, but one thing is certain – the housing crisis is going nowhere, and we need to encourage more homes to be built, which starts with planning approval.”
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