23 March 2026
Act Now: Planning Application Fees Set to Rise by 25%
The UK government proposes significant fee increases for planning applications, directly impacting London homeowners planning future residential property extensions.
The Ministry of Housing, Communities and Local Government has unveiled a consultation proposing a substantial increase in planning application fees across England. Under these new proposals, national application fees for residential developments are set to rise by up to 25%. The government intends to establish a new national default fee schedule based on a 90% cost-recovery model for local authorities. Furthermore, the proposal includes provisions that could eventually grant local councils the power to set their own discretionary charges, moving away from a standardized national fee. This reform is a strategic move to bolster the resources of overstretched planning departments, aiming to tackle the persistent backlogs and slow determination times that have hampered the construction industry. For London homeowners, these changes represent a significant shift in the financial landscape of home improvement, making the timing of new applications more critical than ever.
At London Extend, we closely monitor legislative shifts to ensure our clients are never caught off guard. This proposed 25% hike in planning fees is more than a minor administrative adjustment; it is a clear signal that the cost of developing property in the capital is set to rise. For a homeowner in London looking to add a loft conversion, a rear extension, or a basement suite, these fees represent a mandatory front-end cost that must now be factored into the initial feasibility budget.
While an increase in costs is rarely welcomed, there is a potential silver lining for our clients. For years, one of the primary hurdles in London residential architecture has been the lack of resources within borough planning departments. Chronic underfunding has led to missed deadlines, poor communication from case officers, and a frustratingly slow path to approval. If these increased fees are strictly ring-fenced to improve service delivery, we may see a more responsive and efficient planning system. Faster decisions mean shorter wait times for contractors to break ground, which can save homeowners significant sums in the face of fluctuating material costs and the expenses associated with temporary housing during construction.
However, the proposal to allow councils to set their own fees adds a layer of complexity to the London market. In our city’s unique landscape, we could soon see significant price discrepancies between neighboring boroughs. For instance, an extension application in Kensington & Chelsea could eventually cost significantly more than the same project in Hammersmith & Fulham. This regional variation makes professional guidance even more vital.
Our advice to London homeowners currently contemplating a project is simple: start the design and application process now. By securing your planning permission before these national increases—and any subsequent local hikes—take effect, you can lock in current rates and avoid the 25% premium. Furthermore, as the government moves toward a cost-recovery model, the importance of submitting a perfect application the first time becomes paramount. Re-submissions due to avoidable errors will become an expensive mistake. At London Extend, we specialize in high-quality, detailed submissions that minimize the risk of refusal, protecting your investment from both rising fees and the high cost of project delays. By acting proactively, you can navigate these regulatory changes while ensuring your home improvement goals remain financially viable.