News: 15th January 2025

Statutory Planning Application fees are set to increase substantially from 1st April following the government's attempt to bridge a staggering £362million funding gap for local planning authorities.  The move follows 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 remains, prompting the Ministry of Housing, Communities and Local Government (MHCLG) to implement further increases.

Overview of the fee changes

The April fee increases represent a significant rise for both homeowners and developers.  For example, the Householder Planning Application fee will rise by 105 per cent from £258 to £528.  Developers building two or more homes will also face a 105 percent increase with fees going up from £509 to £1043.

Householder Planning Applications

Householder applications account for 52 per cent of all planning applications determined by local authorities.  The government argues that the higher fees will enable planning departments to process these applications more efficiently, bolstering their overall capacity.

Impact on Developers:  Fees for multiple homes

Fees for applications involving two or more homes will also more than double, ensuring that larger-scale developments will also contribute proportionately to the funding of local planning services.

Prior Approval fees

'Prior Approval' fees for projects such as change-of-use applications and minor building works are also set to rise significantly.  The flat fee will increase from £120 to £240 while prior approvals involving building operations will rise from £258 to £516.  This change reflects feedback from local authorities which indicated that the current fees are well below the actual costs of processing such applications.

Section 73 Applications:  A new three-tier fee system

A new banded structure is being 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 £2000 for major schemes.

Biodiversity Net Gain and Approval of Conditions:  Rising costs

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.

Addressing the £362million funding shortfall

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 landscape carefully.

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If you looking to apply for planning permission before April 2025 so as to beat the fee increases, please get in contact with Alex Coleman Associates to arrange an initial consultation.