23 March 2026
UK Planning Fees Set to Rise: What London Homeowners Need to Know
The government proposes a 25% increase in planning fees, giving local councils power to set their own charges.
The Department for Levelling Up, Housing and Communities has announced a significant proposal to overhaul the planning fee structure across England. The primary change involves a national default fee increase of up to 25% for residential applications. More importantly for the long-term landscape, the government is proposing to grant local councils the power to set their own planning charges independently once they meet specific performance benchmarks. This move is designed to address the chronic under-resourcing of local planning departments, which has led to significant backlogs in recent years. For London residents, this means the administrative cost of securing permission for home extensions, loft conversions, or basement excavations is likely to rise sharply in the coming months. The government's goal is to create a more self-sustaining planning system where higher fees directly fund a faster, more efficient service for applicants.
For homeowners navigating the London property market, this news represents a significant shift in the economics of home improvement. While a 25% increase in application fees might seem like a minor administrative hurdle compared to the total cost of a home extension, it signals a deeper change in how London boroughs will manage residential development.
At London Extend, we believe the impact of this policy will be twofold. Firstly, the 'postcode lottery' of London planning is set to intensify. If individual councils like Westminster, Camden, or Barnet are given the autonomy to set their own rates, we may see a fragmented fee structure across the capital. Homeowners will need to be increasingly diligent about local budget requirements before they even break ground.
Secondly, there is the question of service quality. The primary frustration for our clients isn't just the cost of planning, but the time it takes. Many London planning departments are currently overwhelmed, with some homeowners waiting months beyond the statutory eight-week period for a decision. If these increased fees are strictly ring-fenced to hire more planning officers and upgrade digital submission systems, the 'Planning Alert' could actually be good news. A faster, more predictable planning process would save homeowners thousands of pounds in inflationary material costs and temporary accommodation fees by allowing projects to start on schedule.
However, there is no guarantee that higher fees will immediately translate into better service. Therefore, we are advising our clients to take a proactive approach. If you have been considering a rear extension, a side-return, or a major renovation, now is the time to finalize your architectural drawings and submit your application. By acting before the new national default fee schedule and local council hikes are implemented, you can lock in current rates and avoid the uncertainty of the upcoming price transition.
In a city where space is at a premium and the regulatory environment is constantly shifting, staying ahead of legislative changes is essential. Our team is monitoring these proposals closely to ensure that your path to a larger, more beautiful home remains as cost-effective as possible. While the cost of permission is rising, the value of a well-executed extension in the London market continues to far outweigh these administrative increases.