UK Planning Application Fee Increases: What You Need To Know

Key Highlights

• The UK government is enacting a substantial increase in planning application fees. Marking the second such adjustment since December 2023 when the UK government implemented a notable increase in planning application fees, with major applications rising by 35% and minor applications by 25%.
• Householders can expect to see the cost of their planning applications rise, with fees for full applications for house extensions increasing from £258 to £528.
• This upward revision in fees aims to furnish local planning authorities with the necessary resources to enhance the performance and efficiency of the planning system.
• The implementation of these fee increases is slated for before the end of 2024.
• The government has pledged to undertake regular reviews of these fees to ensure cost recovery and system efficiency.

Introduction

The UK government has announced significant changes to the planning system, including the most notable increase in planning application fees in over a decade. These adjustments aim to modernise the fee structure and ensure its alignment with the current economic landscape. This blog examines the proposed changes to UK planning fees regulations, including the legislative amendments for planning application fee increases, their potential impact on applicants, and the long-term implications for the planning process, specifically for major applications.

Understanding the Proposed Fee Increase for Householder Applications

Planning applications are an integral part of any home improvement or building project in the UK. Still, the costs associated with these applications are often a source of concern for homeowners. The government’s proposed fee increases are set to impact householder applications significantly.

The existing fee for householder applications is £258. It is suggested that the fee for householder applications be raised to align with cost recovery levels. To achieve comprehensive cost recovery, it is anticipated that householder application fees will be raised to £528, an uplift of £270. This notable increase may impact homeowners planning home improvement projects that necessitate planning permission.

Proposed fee increase for other planning applications

The fee for major applications may increase due to high costs to local planning authorities. Views are sought on types of applications, excluding specific ones, where current fees don’t cover processing costs.

These increases represent a significant financial change for homeowners. The government argues that this adjustment is necessary to ensure that fees accurately reflect the costs associated with processing these applications. However, critics argue that these increases might deter some homeowners from pursuing necessary home improvements.

This substantial increase will undoubtedly impact homeowners’ financial planning for their projects, emphasizing the need for careful budgeting and consideration of the new fee structure.

The Impact of Underfunded Local Planning Authorities on the Application Process

A primary motivation behind the fee increase is the need to address the funding challenges faced by local planning authorities across the UK. Underfunding has led to staff shortages and decreased efficiency, resulting in lengthier application processing times.

The additional resources generated through increased fees are intended to bolster the workforce and improve the efficiency of the planning process. By investing in staff training, technology upgrades, and process improvements, local planning authorities aim to reduce backlogs and speed up decision-making.

However, the success of this strategy hinges on the effective allocation and utilisation of the additional funds. Transparency and accountability are crucial to ensure that the investment translates into tangible improvements in the planning process for all stakeholders.

The Rationale Behind the Fee Adjustment

The UK government’s decision to adjust planning application fees stems from the need to address long-standing issues within the planning system. Primarily, the government aims to provide local planning authorities with greater financial resources to improve their services and efficiency.

The existing fee structure no longer reflects the current costs associated with processing applications. This disparity has led to underfunding, specifically for under-resourced planning teams (LPAs), contributing to delays and inefficiencies within the planning process. The government believes that the fee increase is necessary to ensure a more sustainable and efficient planning system for the future, and the Royal Town Planning Institute (RTPI) estimated that an additional £500 million over four years is needed to implement proposed government reforms and upskill planning officers in areas such as design and place-making.

Balancing Costs: Applicant Expenses and Local Authority Funding Shortfalls

The increased planning application fees highlight the delicate balance between applicant expenses and the financial needs of local planning authorities. While planning authorities require sufficient funding to operate effectively, the affordability of application fees for individuals and developers is crucial.

The government contends that the increased fees are necessary to bridge the funding gap and enable planning authorities to provide a more efficient and effective service. This includes investing in staff training, technology upgrades, and other resources to improve processing times and reduce backlogs.

However, concerns remain about the potential impact on applicants, particularly those with limited financial resources. The higher fees could disproportionately affect smaller developers and homeowners undertaking modest projects, potentially hindering development.

The Expected Influence of Fee Increases on Home Development Trends

The proposed increase in planning application fees could have a ripple effect on home development trends across the UK. While the full impact remains to be seen, there are concerns that the higher fees might deter some homeowners from pursuing extensions or renovations.

The increased costs could make extending or improving existing homes less financially appealing, potentially leading homeowners to explore alternative options like moving to larger properties. This shift might impact the demand for new housing, potentially creating a cooling effect on the housing market.

Moreover, the increased fees might discourage smaller-scale developers and self-builders, who often operate with tighter margins than larger developers. This impact could lead to a decline in smaller-scale projects, potentially affecting housing supply and affordability, particularly for first-time buyers.

Key Dates

• 6th December 2023: The UK government announced the proposed fee increases for planning applications in England, marking the beginning of the reform process.
• 1st April 2024: This date marks the implementation of the new fee structure for planning applications in England, reflecting the UK government’s commitment to streamlining and bolstering the planning process.
• By January 1st, 2025 – the UK government will implement a significant rise in planning application fees.

Future Reviews for Continuous Cost Recovery and Efficiency

The UK government’s commitment to a more efficient and well-funded planning system extends beyond the initial implementation of the fee increases. The Department for Levelling Up, Housing & Communities (DLUHC) has outlined plans for regular reviews of the fee structure to ensure its continued effectiveness.

These future reviews will focus on various aspects, including assessing the impact of the fee increases on the efficiency of local planning authorities and the affordability of applications. Reviews will also ensure the fees adequately reflect the costs associated with processing different application types, maintaining a balance between cost recovery and accessibility.

Furthermore, the government intends to analyse the efficiency of the new fee structure by examining key performance indicators like application processing times. These insights will enable the government to make necessary adjustments to the fee structure, including potential fee exemptions, such as the “free go” for repeat applications, ensuring its relevance and ability to support a robust planning system in the long run. The government also plans to conduct future reviews for continuous cost recovery and efficiency, including potential resubmissions, taking into consideration factors such as submission frequency and success rates.

When and Why to Consult a Planning Professional

Consulting a planning professional, such as town planner, can be beneficial in various situations related to planning permissions and compliance.

To limit your risk and expense it is always advisable to seek professional pre-planning advice before starting work or making any changes. If the project is feasible they can advise you on whether any planning consent is required and if so advise on the best way forward before you pay for architect drawings or a planning application. If the project is not feasible, while this might be disappointing it’s certainly better than wasting a lot of time and money on drawings or planning application for something that isn’t feasible.

Another situation in which consulting a planning professional is recommended is when facing planning enforcement action or receiving an enforcement notice. These professionals can assess the situation, provide guidance on the best course of action, and help navigate the enforcement process.

Consulting a planning professional is also beneficial when seeking a certificate of lawfulness or applying for retrospective planning permission. These professionals can assist with preparing and submitting the necessary documentation, ensuring compliance with planning regulations, and maximising the chances of a successful application.

Overall, consulting a planning professional is beneficial when considering a new development or renovation project, facing planning enforcement action, seeking a certificate of lawfulness, or applying for retrospective planning permission. These professionals have the expertise and knowledge to provide valuable advice and guidance throughout the planning process.

Conclusion

In conclusion, understanding the implications of the proposed fee increase for householder applications in the UK is crucial for applicants and local planning authorities alike. The adjustments aim to balance costs, address funding shortfalls, and potentially influence home development trends. As the new fee structure unfolds, monitoring its impact and future reviews will be essential for continuous cost recovery and efficiency in the application process. Consulting a qualified town planner is recommended if you have concerns or need guidance. Stay informed about the timeline for implementation and keep abreast of any exemptions or discounts that may apply to specific types of developments. Planning ahead and staying updated will help navigate through these changes effectively. For personalised assistance and detailed insights, feel free to get in touch with our experts.