London rejects most planning applications despite housing crisis
The majority of councils refusing at least one in two submissions for new housing in 2023 are disproportionately in London, new data shows.
Housebuilders in London have the lowest chance of getting approval for residential planning applications, new data has revealed.
According to leading property data provider Search Acumen, some 15 local planning authorities denied over half of the planning submissions for residential developments last year, with 80 per cent of these refusals in London, the South East, and the East of England regions.
Overall 12 of the top 15 Local Planning Authorities who refused at least 50% of major housing developments were in London, the South East, or the East of England
The company analysed planning application records from the Department of Levelling Up Housing and Communities (DLUHC) for 2023 alongside local council data on party control.
It comes as the capital is grappling with a dire housing crisis due to a shortage of houses and soaring rent prices. As demand heightens, house prices across the city have risen to 12.5 times the average income.
“Where the housing pressure is the greatest is where opposition to new housing is the highest,” said Andrew Lloyd, director of Search Acumen.
“This research shows that overwhelmingly the wealthier parts of the country, in particular the commuter belts in the South East, 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.”
The data also found a correlation between political affiliations and planning outcomes. Councils with no clear party majority were 60 per cent more likely to refuse new major housing planning applications.
The places most likely to be greeted with YIMBYs (Yes In My Back Yard) and get planning permission granted resided broadly in the Midlands and the North. 12 out of 15 Local Planning Authorities who had a 100% approval rate in 2023 of more than 10 major developments were outside of London and the South East.
Out of the 15 councils with a 100% record for large development planning approvals, the majority (60%) were Labour-run.
“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,” Lloyd explained.
“Local elections on May 2nd 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,” he added.
Projections released this year by the Office for National Statistics suggest that the UK needs to build at least 5.7m more homes in England over the next 15 years to fill the deficit left by the growing population.
