Planning applications across England and Wales fell to their lowest annual level since 2012 last year, according to new analysis from Landmark Information Group, raising further questions over the government’s ability to meet its housebuilding targets.
Data published by the property and land data specialist shows that around 689,000 planning applications were submitted in 2025, representing the lowest total recorded in Landmark’s dataset over the past 13 years. The national rate of applications also fell to a record low of 995 per 100,000 people.
The figures come as the government pushes ahead with reforms to the National Planning Policy Framework (NPPF) in an effort to accelerate housing delivery and support its ambition to build 1.5 million homes during the current Parliament.
Despite the decline in overall applications, average approval rates remain high at around 86%, suggesting the slowdown is being driven by fewer schemes entering the system rather than an increase in refusals.
Landmark said planning activity has fallen each year since reaching a post-pandemic peak in 2021, with developers continuing to face higher build costs, viability pressures and broader economic uncertainty.
New-build applications declined by 5.5% year-on-year to 198,240 in 2025, despite continued political focus on increasing housing supply.
The data also showed rising uncertainty within the planning process itself, with 19% of applications now carrying an unknown decision status, the highest proportion on record.
Landmark said this pointed to increasing complexity and delays within the system, particularly for smaller-scale developments.
Applications for extensions and home improvements have also dropped sharply since the pandemic-era surge in activity. Extension applications are down 44% compared with their 2021 peak, reflecting continued pressure on household finances and consumer confidence.
By contrast, alterations and conversions rose by 4.9% year-on-year and now account for almost 40% of all planning activity, indicating a growing preference for refurbishment and repurposing of existing buildings over higher-risk development projects.
The report also highlighted wider operational challenges facing local planning authorities.
Citing separate research, Landmark noted that 64% of senior council officers reported delays to construction projects due to funding uncertainty and skills shortages, while government data showed that 93% of local planning authorities had identified specialist staffing gaps within planning teams.
Josh Rains, managing director of Landmark Geodata, said: “While approval rates remain strong, fewer applications are coming forward in the first place. That points to deeper structural challenges in the planning system, particularly around uncertainty and the time it takes to reach a clear outcome.
“Planning reform has the potential to address these issues, but success will depend on improving decision-making earlier in the process. Better use of data can help identify risks sooner, make applications clearer and give developers greater confidence before submitting applications.
“However, delivery will ultimately depend on how effectively the three core pillars of the planning system, process, people and technology, work together.
“Reform may improve the mechanics of planning, but without the right planning capacity, specialist expertise and the effective use of data and technology, the system will continue to face friction. If these elements can be brought together more effectively, the planning process can operate with greater certainty and support long-term housing delivery.”
The findings add to growing industry concerns that planning reform alone may not be enough to revive housing delivery unless wider issues around local authority capacity, funding and development viability are also addressed.
