Planning application fees are set to rise dramatically this April, following the government’s attempt to bridge a staggering £362 million funding gap for local planning authorities. This move builds on the December 2023 increases, which raised fees by 35 per cent for major applications and 25 per cent for all other applications. Despite these measures, the funding shortfall persists, prompting the Ministry of Housing, Communities, and Local Government (MHCLG) to implement further increases, some exceeding 100 per cent.
The April fee increases represent a significant financial shift for both individual homeowners and developers. For example, the fee for householder applications for a single home will rise by 105 per cent, from £258 to £528. Developers building two or more homes will face a similar 105 per cent increase, with fees going up from £509 to £1,043.
Householder applications account for 52 per cent of all planning decisions made by local authorities. The government argues that the higher fees will enable planning departments to process these applications more efficiently, bolstering their overall capacity.
Fees for applications involving two or more homes will more than double. This measure ensures that larger-scale developments also contribute proportionately to the funding of local planning services.
Prior approval fees for projects such as change-of-use applications and minor building works are set to rise significantly. The flat fee will increase from £120 to £240, while prior approvals involving building operations will climb from £258 to £516. This change reflects feedback from local authorities, which indicated that the existing fees were well below the actual costs of processing such applications.
A new banded structure will be introduced for Section 73 applications, which are used to modify or remove conditions attached to planning permissions. These fees will range from £86 for householders to £586 for non-major developments and up to £2,000 for major schemes.
The fee for submitting a biodiversity net gain plan will rise from £145 to £298. Similarly, approval of details reserved by condition will now cost £86 for householders and £298 for other developments—doubling previous rates.
The government justifies the fee increases as necessary to ensure the sustainability of local planning authorities. By targeting fees that were significantly lower than the actual cost of application processing, the MHCLG aims to improve efficiency while addressing the chronic underfunding of development management services.
For those planning property developments, these changes highlight the importance of factoring increased fees into their budgets. Whether for single home improvements or multi-unit developments, stakeholders will need to navigate this evolving financial landscape carefully.
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