BLOGS

Introduction

The planning system in England and Wales has long been cited as a bottleneck for housing delivery. Lengthy appeals, inconsistent decision-making, and outdated processes have frustrated developers and delayed schemes worth billions of pounds. However, 2025 marked a turning point: legislative changes limiting appeals to original evidence, combined with Wales's ambitious £9 million digital infrastructure upgrade, have begun reshaping how applications move through the system.

REalyse planning data reveals the early impact of these reforms, with approval rates climbing and processing times edging downward for the first time in years. For property professionals tracking the pipeline, the numbers suggest a genuine shift rather than statistical noise.

Approval rates rise as appeal restrictions take effect

The July 2025 reforms introduced a significant change to the appeals process: appellants can no longer introduce new evidence at appeal stage unless they demonstrate exceptional circumstances. This measure aims to discourage speculative applications designed to gather information for future appeals rather than secure genuine consent.

REalyse data shows the impact is already visible. In England, approval rates rose from 66.3% in 2024 to 71.5% in 2025—a five-percentage-point improvement representing thousands of additional granted applications. Wales followed a similar trajectory, with approval rates increasing from 70.1% to 71.7% over the same period.

Across both nations, local planning authorities decided on over 59,000 applications in 2024-2025, with more than 41,000 receiving consent. The volume of activity remains substantial: the South East alone saw nearly 12,000 applications submitted during 2024-2025, proposing approximately 168,000 new homes. The East of England followed with over 8,200 applications and 121,000 units in the pipeline.

Processing times show modest improvement

Beyond approval rates, the reforms appear to be easing administrative burden. Average processing times fell from 218.6 days in 2024 to 213.2 days in 2025—a reduction of approximately five days. While this may seem incremental, across tens of thousands of applications it represents meaningful acceleration in bringing schemes to determination.

The improvement likely reflects several factors: fewer speculative applications designed purely to test the water before appeal, clearer guidance on submission requirements, and early benefits from digital processing improvements. For developers managing cash flow and construction timelines, even modest time savings translate directly into reduced holding costs and faster project starts.

Wales's £9 million digital transformation

Wales has taken a different but complementary approach to planning modernisation. The Welsh Government's £9 million investment in digital planning infrastructure, rolled out through 2025, is creating a unified platform for application submission, tracking, and decision-making across all 22 local planning authorities.

The new system standardises data formats, enables real-time status tracking, and reduces the administrative friction that historically delayed Welsh applications. Early adopters report faster validation times and clearer communication channels between applicants and case officers.

For investors and developers operating across the border, the Welsh upgrade represents a significant narrowing of the capability gap with English authorities that have benefited from longer-running digital programmes. Combined with Wales's already competitive approval rates—consistently above 70%—the reforms strengthen the case for Welsh residential development.

What this means for developers and investors

The planning pipeline remains substantial. REalyse data shows over £160 billion in residential project value currently moving through the planning system in England and Wales, with large schemes (10+ units) accounting for over £104 billion and mega-developments (500+ units) representing £47 billion.

Build-to-rent continues to command significant attention from institutional investors, with 182 BTR applications decided in 2024-2025 representing over 40,000 units and £12.5 billion in development value. Approval rates for BTR schemes remain strong, reflecting local authority recognition of the sector's role in addressing rental housing need.

For those tracking opportunities, the combination of higher approval rates, faster processing, and clearer appeal rules creates a more predictable environment for site acquisition and scheme design. The reforms reward well-prepared applications with comprehensive supporting evidence—exactly the approach favoured by professional developers and informed by thorough market analysis.

Outlook: application surge expected

Industry observers anticipate a surge in application volumes through late 2025 and into 2026 as developers respond to the improved regulatory environment. Sites that may have been held back due to planning uncertainty are now moving forward, while landowners are more willing to engage with potential purchasers given the higher probability of consent.

The challenge for local authorities will be maintaining decision quality and processing speed as volumes increase. The Welsh digital platform and ongoing English digitisation efforts should help, but capacity constraints remain real—particularly in high-demand regions like London, the South East, and key growth corridors.

For property professionals, the message is clear: the planning system, while still imperfect, is becoming more navigable. Those equipped with robust market data, accurate comparables, and clear understanding of local authority requirements will be best positioned to capitalise on the improved conditions.