New planning policy published in December 2024 is starting to influence market dynamics, according to research by Savills.
The findings of research around the changes to the NPPF, carried out in partnership with Landmark Chambers, were presented to the around 40 delegates at a Spotlight on Thames Valley planning breakfast at Savills’ Reading office on September 3.
The research showed that while numbers of full planning consents for new residential development have continued on a downward trajectory in 2025, appeal activity indicates a positive shift – with 80 per cent of residential capacity determined through the appeal process in Q1, gaining consent.
Savills reports the uptick is particularly notable in Green Belt cases, which saw a 36 per cent success rate in the quarter.
Hamish Simmie from Savills Residential Research (pictured) who presented at the event, said: “This year has brought with it significant change in the planning and development sector, and while the planning system has been slow to respond, there is a case for cautious optimism.
“New build sales rates remain stable, albeit 18 per cent lower than the pre-2019 average, and house and land values have risen. Although consents have continued to decline, appeals show a positive trend.”
However, the research also highlighted that three in five local authorities in the Thames Valley do not have a five-year housing supply.
Hamish went on: “The slow pace of Local Plan updates, coupled with widespread land supply shortfalls continue to challenge delivery. Overall though, the figures indicate that the momentum is there.”
Hashi Mohamed, a barrister from Landmark Chambers, who provided an overview of the key changes, including sequential testing and the introduction of the Grey Belt, along with an analysis of how the new rules apply within the Thames Valley region, said: “One year on from this Government coming into power, despite numerous challenges, it has remained steadfast in its commitment to provide more housing, and in particular more affordable housing.
“In my judgement it is a relatively optimistic time to be getting in your planning applications in the Thames Valley.
“But the general direction of travel, the speeding up of the planning system, and the target of 1.5 million homes in the Parliament, will all need significant resourcing of local authorities and the Planning Inspectorate.”
Julia Mountford, joint head of Savills Central Planning, who chaired the event, said: “Now is a critical period within planning and development in the Thames Valley.
“We can see real potential to accelerate the sustainable delivery of much-needed housing. While progress still remains dependent on resources to a degree and other factors, the uptick in the number of allowed appeals is very positive for the industry.
“Looking ahead, anticipated local government reorganisation and devolution initiatives look set to reshape planning authority structures.
“Whilst creating an element of additional uncertainty, there are also opportunities which those in the industry should remain agile to, in order to positively navigate this complex and transitional environment.”
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