Research from Savill’s has found that changes to planning policy are sending ‘clear signals’ through the appeals process, with planning officers embracing the revised National Planning Policy Framework (NPPF) and successful appeals reaching their highest level since the framework was introduced in 2012.
The 12th annual planning research report from the real estate services company reveals that although figures for the first quarter show a decline in applications and consents, a surge is expected towards the end of the year and into 2026.
In the three months to January 2025, 50,000 applications for new homes were submitted, falling to 45,000 over the first quarter of the year. The number of approvals also fell in the Q1 of 2025, with consent for 45,521 new homes representing a 25% reduction on the quarterly average for 2024.
However, despite what Savill’s refers to as ‘discouraging’ indicators, the analysis has identified a positive shift in the approach to the appeals system – ‘which does suggest that in the medium to long term, the flow of consented land should increase’.
Savill’s explained:
“The total volume of appeal decisions had been declining in recent years, reflecting a fall in applications submitted since 2021. But in the first quarter of 2025, a clear signal towards positive decision-making has been set by planning inspectors, according to PINS appeal data. 80% of the residential capacity determined through the appeal process in Q1 2025 was granted planning consent, compared to an average over the last ten years of 57%.
“The number of successful major appeals (sites of more than ten homes) in the first quarter of the year has already exceeded 50% of the annual average yearly total for 2021–2024, and the proportion of total residential consents that was granted via appeal is higher than any year since the first introduction of the NPPF in 2012.”
The reinstatement of higher mandatory housing targets is the key driving force behind the uptick of success for developers across planning appeals, Savill’s believes, with the increased flexibility for releasing Green Belt land if sites meet the Golden Rules also contributing to the increase.
The figures are a cause for ‘cautious optimism in a challenging market’, the report notes.
“Clear signals are being sent through the appeals process. Planning inspectors are undoubtedly embracing the revised NPPF positively, and setting an example to other planning decision-makers in the process.
“Strengthened targets and land supply requirements will begin to feed into local decision-making. Combined with further reform, this has the potential to offer an unprecedented opportunity for acquiring and progressing sites over the next few years.”
