Planning Portal Market Insight Report June 2021

Planning Market Insight Report from the Planning Portal NEW IMAGE HERE

June 2021 Planning Market Insight Report

1

Welcome to the latest edition of th The Queen addressed the nation in early May when she formally opened Parliament and outlined the government’s proposed policies and legislation for the coming parliamentary session. In reference to infrastructure and ‘levelling up’, a Product Security and Telecommunications Infrastructure Bill will extend 5G mobile coverage and introduce new safety standards for digital devices. The Environmental Bill, which has been repeatedly delayed, will introduce new post-Brexit rules on protecting nature. A pledge to reform planning laws with the aim of increasing the number of new houses being built was also included. Under new proposals, areas will be designated for growth, protection, or regeneration, with developments in growth areas being harder for local opponents to block.

The speech also referred to the ongoing overhaul of the Building Regulations system in the UK, which the Queen said would “ensure the tragedies of the past were never repeated”1. Following this, the Ministry of Housing, Communities and Local Government has released details of new fire safety statements which developers will have to provide from August 2021.

In line with government guidance for dealing with the pandemic, Local Authorities have been hosting planning committee meetings virtually. The temporary legislation allowing this ended on 6 May 2021 and this is raising many questions and a lot of upset throughout Local Authorities. Luke Hall, the Minister for Local Government, wrote to all Local Authority leaders to say that extending the temporary legislation beyond 7 May would require primary legislation. He highlighted the “significant impact” the process of passing this legislation would have on the government’s legislative programme which is “already under significant pressure”. He also referred to the “excellent progress that has been made on our vaccination programme and the announcement of the government’s roadmap for lifting Covid-19 restrictions.” The government have instead issued guidance to help Local Authorities operate “safely and securely” but the move remains controversial. James Jamieson, chairman of the Local Government Association (LGA), said the decision is “extremely disappointing”2.

He points out that for other groups, indoor activities are not allowed until a later date, with MPs retaining the right to participate remotely until 21 June.

2

he Planning Market Insight Report As we mentioned in our last report, Local Planning Authorities are under pressure from the large amount of applications that are being submitted. We can confirm that whilst remaining high overall, application submissions for May were down slightly compared to the previous month. A total of 63,497 applications were submitted, a decrease of 3%. However, compared to May 2020’s total, this is an increase of 52%. The average number of applications submitted during a working day in May was 2,719; an increase of 54% compared to May 2020’s total.

The report this month also includes a contribution from Savills which assesses the recent market drivers and discusses what shape the future may take.

We’ve also created a feedback survey to ensure that this report remains useful and relevant; we’d be grateful if you could complete it here.

We hope you enjoy this month’s edition!

Sarah Chilcott Managing Director – Planning Portal

Source: https://www.constructionnews.co.uk/government/queens-speech-planning-reforms-and-infrastructure-

1

investment-pledged-11-05-2021/ Source: https://www.theplanner.co.uk/news/covid-19-virtual-planning-committee-meetings-to-end

2

3

Application numbers in England and Wales National graph over five years 80,000 75,000 70,000 65,000 60,000 55,000 50,000 45,000 Lockdown

40,000 35,000

Construction reopened

2016

2017

2018

2019

2020

2021

30,000 Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

The national graph represents the number of online planning application submissions via the Planning Portal each month since the beginning of 2016.

Unusually, last month saw fewer applications submitted than the previous month – 63,497 in May 2021 compared to 65,357 in April 2021. As you can see from the Lockdown graph, the typical seasonal pattern is that applications rise from April into May, often steeply. It is too early to draw any definite conclusions from this variation.

It could be that this is simply because April 2021 was higher than a typical April, or that May 2021 had a particularly low number of working days compared to previous years, at only 19.

It may also be an indication that the bounce back of application volumes we have seen since last June is finally starting to slow. As we have consistently highlighted, other than an underlying shift to online submissions, the increase has been largely driven by homeowners intending to extend or improve their homes, and this is of course a finite market.

4

We will continue to monitor this pattern closely over the next couple of months.

This should give us a good indication of the true picture, as volumes for May to July are usually fairly similar before numbers drop slightly for the summer holiday period over August and into September.

Given that in May 2020 we were in lockdown, it is unsurprising that the volume of applications submitted this May is 52% higher than in the same month last year.

National graph by week 90,00020,000 80,00018,000

16,000

70,000

14,000 60,000

12,000 50,000

10,000 40,000

8,000 Lockdown

30,000

Construction reopened

6,000

20,000 4,000

10,000

0

2,000 2016

0 Jan

Feb

Mar

Apr

2017

2019

May

2018

Jun

2019

2020

Jul

2020

2021

2021

Aug

Sep

Oct

Nov

Dec

5

The regional view Is the North East reaping the rewards of investment?

Compared to May 2020, when the country was just beginning to open up after the first lockdown, the number of planning applications submitted throughout May 2021 has increased across all regions of England and Wales.

For the third month in a row, the leading region, in terms of the number of applications submitted, is the North East with a 67% rise from last year.

Historically, the region has seen little activity in terms of development. Yet, since 2017, the North East has seen significant increases in business generation and investment. It boasts the most productive car plant in Europe, is home to the fastest growing digital tech cluster outside of London and is a well-established hub and gateway for offshore energy. Research from Carterwood1 shows the region saw the lowest development in care home provision throughout England in 2020; however, it has recently had a £5 million commitment from L & G to develop extra care developments to support the elderly2. It is also aiming to ‘level up’ its educational prowess, with ‘Opportunity North East’ being implemented3 to help inspire young people from primary school age. Could these be the reason for the dramatic increases in activity?

The other way to look at it, is that London and the South East are becoming a saturated market. With heavy development, continually rising house prices, and a high demand for suitable land, are developers and industries looking for more cost-effective regions and new opportunities?

Nevertheless, the South East is the only region that has not realised a decrease between April and May 2021, seeing a 1% increase month on month with over 13,000 applications submitted. London follows into a close second place having submitted over 11,000 applications, although this is a 4% decrease on applications submitted throughout April 2021.

Source: https://www.carterwood.co.uk/new-research-by-carterwood-reveals-elderly-care-home-and-bed-

1

opening-trends-and-uks-most-active-operators/#regionaltrends Source: https://www.chroniclelive.co.uk/news/north-east-news/newcastle-gets-5m-pledge-lg-18929761

2

Source: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/

3

6

file/861897/ONE_DeliveryPlan.pdf

Percentage change in applications by region from April 2021 to May 2021

-3%

North West

North East

-7% -6%

-1% West Midlands

Wales

Yorkshire & The Humber

East Midlands

-5%

East of England

-2%

-5%

-4% South West

London

-1% 1%

South East

Regional percentage change between May 2020 and May 2021 14,000

12,000

10,000

8,000

6,000

4,000

2,000

0 East Midlands East of England

London

North East

North West May-20

South East May-21

South West

Wales

West Midlands

Yorkshire and The Humber

7

Local Planning Auth

Earlier this month, our Business Development team met with the Core Cities Planning G of Planning for the nine English and Welsh core cities outside of London, come togethe the best possible services for their citizens.

In line with our data (as the graph below shows), they confirmed experiencing the dr revolved around the additional strain these increases have put on resources when it co

Despite what has been bandied about in the media, the cities were pleased to report th in the way they work, creating a smooth transition process. The new ways of working h

The new reliance on digital ways of working meant departments promoted greater advo and effective processing of applications for all.

Similarly, as mentioned in the foreword, the new online planning committee meetings disappointment all around that these had come to an end.

There were extensive discussions about returning to the office. With working from hom reducing it from seven desks per ten staff to four per ten. It was highlighted that one o between teams and with managing their own departments. One of the most difficult discussions, with specific sessions having to be scheduled to teach. It was felt that th developing close working relationships.

Percentage change in application submissions, 2020 vs 2021 YTD 140%

120%

100%

80%

60%

40%

20%

0% Jan

8

Feb

Mar

Apr

Birmingham City Council

Bristol City Council

Cardiff Council

Leeds City Council

Manchester City Council

Newcastle City Council

Nottingham City Council

Sheffield City Council

May Liverpool City Council

horities: Core Cities

Group to discuss their experiences over the last year. The group, made up of the Heads er on a regular basis to share ideas and experiences to help ensure they are delivering

ramatic increase in the number of applications received. The overwhelming response omes to registering and processing submissions.

hey all had the technical infrastructure and equipment in place to facilitate the changes have led to a quick adoption of new digital processes that have now become the norm.

ocacy for online applications to all applicants and agents, which ensured a more efficient

s that were held in line with government guidelines were received well and there was

me being a success, one council mentioned they are reviewing their hot-desking policy, of the drawbacks of home working was the lack of face-to-face contact with staff, both t areas to manage is learning and development, especially around planning casework he other benefits missing from here were the ability to check on staff well-being and

Core Cities application submissions, 2020 vs 2021 YTD Sheffield City Council

Nottingham City Council

Newcastle City Council

Manchester City Council

Liverpool City Council

Leeds City Council

Cardiff Council

Bristol City Council

Birmingham City Council 0

500

1000

1500 2020

2000

2500

3000

3500

2021

9

Applicatio

Applications for home improvements continued to outperform the average rise in app of the first lockdown in spring 2020. In May, Householder consents were 88% higher th May 2020 was not typical, as construction sites remained closed throughout the month

Other consent types relating to home improvements also performed strongly, with La Extensions respectively 87% and 93% higher than the previous year.

The outlook for larger schemes continues to improve, with Full Planning applications compared to a 5% drop last year, but does give some measured cause for optimism.

16% on May 2020.

The other application types of note this month were Advertisement consents, which in consent type was particularly badly hit as a result of the pandemic but has since show higher than last May.

And finally, Prior Approvals for Telecoms were slightly lower than 2020 for the second con roll-outs than seasonality.

Application Type Householder and associated consents Full Planning and associated consents Outline Applications Advertising Applications Prior Approval: Development by Telecoms Operators Tree Works: Trees in conservation areas/subject to TPOs Lawful Development Certificates Prior Approval: Larger Home Extension

Full Planning Applications and associated consents 14,000

12,000

10,000

8,000

10

Jan

Feb

Mar

Apr

May

Jun 2019

Jul 2020

2021

Aug

Sep

Oct

Nov

Dec

ons by type

plications, as they have done consistently since applications recovered from the shock han in May 2020, against a total increase of 52%. We should remember of course that h and into early June.

awful Development Certificate (LDC) applications and Prior Approvals for Larger Home

s and associated consents 32% higher, following a 30% rise in April. This is of course Outline consents, often viewed as a longer-term indicator of confidence, were also up

ncludes out of home advertising and shopfront signage. As reported last month, this wn a strong rise for the third consecutive month. Applications of this type were 127%

nsecutive month, though these application types tend to be more reliant on programme Total 2020 vs 2019 (+/-)

May 2021 vs 2020 (+/-)

18%

+88%

-5%

+32%

-8% -34%

+16% +127%

378% 36% 14% -

-4% +2% +87% +93%

Householder Applications and associated consents 28,000

26,000

24,000

22,000

20,000

18,000

16,000

14,000

12,000

10,000 Jan

Feb

Mar

Apr

May

Jun 2019

Jul 2020

2021

Aug

Sep

Oct

Nov

Dec

11

Sav

Performing against expecta Recent market drivers

Most people spent much more time at home over the last year than they may have b market saw unusual levels of activity as those households with the financial security t workplaces and schools, as well as places to live. A Savills survey in April 2020 found tha from home, access to outside space and more rural locations. 49% of respondents me driver for their house move. That figure rose to 52% when we repeated the survey in locations had fallen slightly.

Despite the economy contracting by 10%, house prices rose by 7.3% over the year, as th urgency to a market. Remarkably, transaction levels ended the year just 11% below th home buyers spent a record £120.5bn in Q4 2020, some 22% above the previous high i

In terms of development, the picture has been more mixed. New homes completions w England, according to Energy Performance Certificates (EPC) data. This has been driven b of homes under construction to satisfy high levels of demand before the original Stam despite the recovery, the number of homes delivered in the year to Q1 2021 in Englan 220,726. Higher rates of delivery over the last three quarters have not made up for the dis

What does the future look like?

The second half of 2021 and beyond presents more complex questions. There is potenti duty holiday ends and the economic realities of lockdown are brought more sharply i furlough scheme. A tapering of the stamp duty relief in the period to September will supp the market to cool from its current level.

In London and the wider South East, housing market activity will be constrained by aff But at the same time, some households have been able to build up savings during the in Q2 of 2020, a record high since the series began in 1987. This build-up of savings will existing property.

It also remains to be seen how much the factors that made people reassess their living sp of people working from home more than doubled in 2020, though it remained a minorit employed in London have worked from home, but as few as 14% of employees in Burn

If hybrid models of working persist, we could see the housing market become less co firms interviewed by the BBC in May 2021 stated that they anticipated staff would co in a reduced need for office space, it could lead to a permanent reshaping of city cent bring more residential into formerly commercial areas.

12

vills

ations: residential property

been expecting. As a result, the housing to do so sought homes that could act as at buyers were prioritising space to work entioned working from home more as a March 2021, but the popularity of rural

he stamp duty holiday added a sense of hose of 2019. Our calculations show that in the third quarter of 2007.

were unusually high Q1 2021, at 62,971 in by housebuilders prioritising completions mp Duty and Help to Buy deadlines. But nd was -13% below the previous year at sruption of the first lockdown in Q2 2020.

ial for a lull in the market once the stamp into focus with the winding down of the port transaction levels, but we do expect

Home working patterns in 2020 Source: Savills Research using ONS

ffordability pressures, particularly if interest rates rise from their current historic lows. e pandemic, with the household savings ratio increasing from 9.6% in Q1 2020 to 29.1% enable some buyers to get on the housing ladder, trade up, or invest in improving their

pace, like increased working from home, will persist. According to the ONS the proportion ty of overall workers across the UK. The impact has been unevenly spread; 48% of those nley and Middlesbrough.

ommuter driven, particularly in the areas surrounding major cities. 43 out of 50 major ontinue to work from home for two to three days per week indefinitely. If this results tres, aided by reforms to planning policy for change of use which will

Emily Williams Associate Director, Residential Research

13

Planning application fees Perhaps unsurprisingly, and in line with applications falling slightly from April to May 2021, planning fees also fell over the same period. In May 2021, £25,838,750 in planning fees were transacted through the Planning Portal, down by £2,451,882 from £28,290,632 in April 2021.

Comparing this data to the same period last year, May 2021 saw applications rise by 52% on May 2020, but fees only rose by 42%. This points to a higher number of smaller applications being submitted, as planning fees for individual home improvement projects are typically lower than £250, whereas planning fees for larger schemes vary enormously, but can be as much as £300,000.

By examining the data for the months January to May in each year, we can see that this pattern is replicated each month. Overall, in the first five months of 2021, 323,554 applications were submitted online via the Planning Portal. This is an increase of 98,843 or 44% on the same period in 2020, in which 224,711 applications were submitted. Over the same five-month period, January to May, planning fees however were only 28% or £27,401,311 higher, rising from £99,555,400 in 2020 to £126,956,711 in 2021.

Pre-pandemic, the resourcing challenges for Local Authorities generally and planning departments in particular had already been recognised. Indeed, a report in July 2019 by the Royal Town Planning Institute (RTPI)1, highlighted that planning fees only covered around half of the costs of running a Local Authority planning department, but also described the planning profession’s “shift to the private sector” and challenges in recruitment and retention for councils. Given the data above, it is clear that the pandemic has further exacerbated the situation with planning fee income rising more slowly than application volumes.

Source: https://www.rtpi.org.uk/policy/2019/november/resourcing-public-planning/

1

14

Planning fee income for online applications £35,000,000

£30,000,000

£25,000,000

£20,000,000

£15,000,000

£10,000,000

£5,000,000

£0 Jan

Feb

Mar

Apr

May 2019

Jun 2020

Jul

Aug

Sep

Oct

Nov

Dec

2021

Planning fee income for online applications 10,000,000

60%

8,000,000

50%

6,000,000

40%

4,000,000

30%

2,000,000

20%

0

10% May-20

Jun-20

Jul-20

Aug-20

Sep-20

Oct-20

Nov-20

Dec-20

Jan-21

Feb-21

Mar-21

Apr-21

May-21

-2,000,000

0%

-4,000,000

-10%

-6,000,000

-20%

-8,000,000

-30% 2019 vs 20 vs 21 Change (£)

Annual monthly variance

15

Planning Portal: Past, Present and Future Webinar series – we’re taking a summer break!

With the government introducing new permitted development policies and changing some rights, we will use the next webinar episode to update you on how we are going to accommodate these changes on our current service. We’ll also explain how they will be incorporated in our future development to ensure applicants and agents will have access and be able to submit these applications.

As part of this, we recommend that Local Authorities ensure they are on the latest version of our data standard (or schema) to ensure all application types are being successfully retrieved into their back-office system. If you are unsure about this, please contact our service desk at support@planningportal.co.uk for more information about what data we make available via the 1APP connectors and integrations.

In the latest episode, we presented some of the developed pages that will be included in the application service when we have completed re-platforming the system. If you missed this webinar and would like to know more, please catch up on our YouTube channel.

Register for the last episode in the series

Save the date!

Planning Portal’s third annual conference will be held 15 – 18 November 2021.

This year’s event will be hosted on our new virtual conference platform, due to go live soon, which will enable delegate networking in advance of the event, as well as exhibitor spaces and live streaming.

With a line-up of industry leading keynote speakers and engaging panel discussions the event will provide expert insight and lively debate about the ‘hot topics’ in the planning industry: • • • •

Planning reform and digitisation of the planning system Biodiversity net-gain Carbon zero Community engagement.

Our new platform will allow you to create a delegate profile, network with other delegates, organise online meetings and be paired with delegates, products and services through innovative technology.

The event will have over 12 hours of CPD Accredited content and be streamed for three hours over each of the four dates, giving delegates the chance to attend without too much interference into your daily business.

The official conference platform will be open soon, keep an eye out to make the most out of your registration!

What do you think of the report?

Through this report we are aiming to deliver unique insight, the latest trends in the market and analysis of key planning and building topics. We believe our content is relevant and interesting, but we always welcome feedback and recommendations.

We’d be grateful if you could fill out this short survey to help us improve the report:

Complete the survey

In next month’s edition...

The beginning of this report references how well the UK is doing in terms of economic recovery. By next month, we will hopefully have had more restrictions lifted and the vaccine programme should be further through. We will be analysing this predicted economic recovery in more detail in next month’s edition, hearing from those in the planning, building and construction industry about future plans for the UK.

Subscribe to receive the report

18

ReQuestaPlan Save time and money with ReQuestaPlan’s location and site plan service.

The preferred mapping partner of the Planning Portal

Editandre-downloadexistingplans Automaticallydrawspropertyboundaries Arangeofscaleoptions

PDFandDWGformatsavailable Pay-as-you-goormonthlybillingoptionstosuityou Easytouseredandblueboundarytools

Easytouse

Editandre-downloadexistingplans

Colourpalette&hatchpatterns

Automaticallydrawspropertyboundaries

Advanceddrawingtools,measurementlines,outbuildings

Arangeofscaleoptions

1:2500mapsavailableforprofessionalaccounts

PDFandDWGformatsavailable

AutoCADcompatibleoutputforarchitects,engineers

Pay-as-you-goormonthlybillingoptionstosuityou

&constructionprofessionals

Easytouseredandblueboundarytools

www.requestaplan.co.ukEasytouse Colourpalette&hatchpatterns

19

Advanceddrawingtools,measurementlines,outbuilding

Planning Market Insight Report from the Planning Portal

This report is provided for free on behalf of the Planning Portal and TerraQuest If you think this report would be useful for your colleagues too, please send them the link to register.

Register Now

June 2021: Planning Market Insight Report