Local planning authorities are increasingly relying on developer-funded payments to resource the planning process, yet decisions on new housing are still being held up, house builders argue.
The report, from the Home Builders Federation (HBF) and Paragon Bank, analysed Freedom of Information responses from 85 councils. It found that between 2022 and 2025 they received an average of almost £600,000 each through Planning Performance Agreements (PPAs). Twelve councils took in more than £1m, with the City of London receiving the most at almost £5m.
PPAs let applicants and councils agree timescales for complex schemes. However, applications covered by them are no longer measured against the standard statutory deadline, which, alongside Extensions of Time, can make headline performance figures look better than the real waiting times, according to the HBF.
The HBF warns that SME builders are hit hardest by delays, risking experienced developers leaving the market. It notes that 90% of planning departments are under-resourced, with an estimated 2,660 more officers needed.
The report urges Government to require councils to publish PPA income, create a national PPA framework, issue updated guidance and keep investing in planning staff.
HBF chief executive Neil Jefferson said: ‘With the Government’s housing targets requiring a significant increase in delivery, we need sustained investment in planning departments alongside greater transparency over how additional fees are being used, and how PPAs should be used. A properly resourced and consistent planning system is essential to giving businesses chance to successfully increase housing delivery.’
