BLOGS

The gap between ambition and delivery

Planning reform has been a centrepiece of the government's housing strategy, with bold commitments to cut red tape, empower local authorities, and unlock land for development. Ministers have promised that streamlined processes will translate into more homes built faster. But does the evidence support this optimism?

REalyse data tracking residential planning applications across England, Scotland and Wales tells a more sobering story. The planning system remains under significant strain, with local authorities struggling to process applications within statutory timeframes and backlogs extending into years rather than months.

Local authority backlogs: the scale of the challenge

The data reveals a planning system operating well outside its intended parameters. Across 318 local authorities analysed, the average backlog for pending applications now stands at nearly 1,000 days—approaching three years from submission to decision for many applicants.

Only around one-third of applications are currently being determined within statutory timeframes (8 weeks for minor applications, 13 weeks for major schemes). The average time to decision has stretched to approximately 148 days—more than double the 8-week target for standard applications.

Regional disparities are stark. Some authorities in the South East and London are processing applications with average backlogs exceeding 2,500 days, while others manage to keep wait times below six months. Tower Hamlets, for example, shows 270 pending residential applications with determination times averaging over seven years—a symptom of both high demand and constrained capacity.

These delays carry real costs. For developers, extended uncertainty inflates holding costs, complicates financing, and undermines viability assessments. For would-be homebuyers and renters, each month of delay represents continued undersupply in markets already stretched thin.

A growing pipeline—but will it translate into homes?

Despite processing challenges, the headline pipeline figures offer some encouragement. REalyse data shows the total residential units in the planning pipeline grew from approximately 532,000 in 2023 to over 754,000 in 2025—a 42% increase that suggests developers remain willing to bring forward schemes despite systemic friction.

Large-scale developments of 150+ units dominate this pipeline, accounting for over 530,000 units in 2025 alone. These strategic sites represent the schemes most likely to move the needle on overall housing supply, but they also face the most complex determination processes and longest lead times from approval to first occupations.

The medium-sized segment (51-150 units) has also seen growth, rising from around 93,000 units in 2023 to nearly 110,000 in 2025. These schemes—often build-to-rent projects or urban infill developments—typically offer faster delivery timelines once approved.

However, a significant proportion of this pipeline remains stuck in pending status. Over 380,000 units in large schemes alone are still awaiting determination in 2025. The gap between applications submitted and permissions granted represents the critical conversion challenge that reform must address.

Where reform could make the difference

Several factors will determine whether the current wave of reform translates into tangible outcomes:

• Resourcing planning departments: Statutory targets mean little if authorities lack the officers to process applications. Many planning teams have seen headcount reductions while application volumes have grown, particularly for complex major schemes.

• Reducing determination times for strategic sites: Large schemes face lengthy negotiations over Section 106 agreements, design reviews, and environmental assessments. Streamlining these processes without compromising quality is essential for unlocking the biggest sites.

• Tackling the implementation gap: Approved schemes that never break ground represent a persistent challenge. Rising construction costs, viability pressures, and infrastructure requirements can stall even consented developments. Planning reform alone cannot solve this—it requires coordination with funding mechanisms, infrastructure delivery, and market conditions.

What the data means for investors and developers

For those actively deploying capital into UK residential, the planning data carries practical implications. Areas with faster determination times and lower backlog levels may offer more predictable development timelines, while authorities struggling with capacity present higher execution risk.

REalyse data shows considerable variation in performance even within regions. Some authorities achieve determination within statutory timeframes in over 50% of cases, while neighbouring boroughs fall below 20%. This granular variation matters for site selection and due diligence.

The concentration of pipeline units in large schemes also signals where institutional capital is flowing. Build-to-rent, co-living, and large-scale suburban developments dominate the 150+ unit category, reflecting continued institutional appetite for purpose-built rental and scalable delivery models.

Outlook: reform is necessary, but not sufficient

The planning system's challenges are real and well-documented. Backlogs measured in years rather than weeks, statutory targets missed more often than met, and a growing queue of applications waiting for determination all point to a system under pressure.

Reform efforts—from permitted development rights extensions to proposed changes in the Planning and Infrastructure Bill—aim to address these bottlenecks. But planning is only one link in a complex chain from land identification to completed homes. Construction capacity, labour availability, materials costs, infrastructure funding, and market demand all play decisive roles.

The 754,000-unit pipeline represents significant potential. Converting that potential into the homes the UK needs will require not just faster planning decisions, but sustained commitment across the entire development lifecycle. For now, the data suggests that while reform is moving in the right direction, the planning system remains a constraint rather than an enabler of housing delivery.