The proportion of residential planning applications that were successful versus those that were rejected sat at the lowest level since 2008 last year.
What is more the total application count dropped to their lowest annual total in a decade, worrying analysis from Searchland shows.
In 2022 an estimated total of 60,986 residential planning applications were either approved, rejected or are still awaiting a decision, a -5% annual decline versus the 64,419 seen in 2021.
Of the 45,182 residential planning applications seen in 2022 that were either approved or declined, 32,956 were approved versus 12,226 that were rejected – an approval rate of 73%, down from 75% the previous three years.
Mitchell Fasanya, co-founder and CEO of Searchland, said: “Despite the residential property market benefitting 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 that will 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 reevaluate where, 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 for certain, the housing crisis is going nowhere and we need to encourage more homes to be built, not less, which starts with planning approval.”
