Planning and Infrastructure Bill 2025 - Update Property Notify

Prepared jointly by Corbil Planning and iHowz Landlord Association

England’s Planning Crisis: A System Under Strain

England’s planning system is facing a critical moment. In 2024/25, just 235,000 homes were granted planning permission—the lowest number in more than a decade, and well below the Government’s long-standing 300,000 homes per year target. The root causes are complex: under-resourced local planning authorities (LPAs), overcomplicated planning processes, and waning participation from SME developers, many of whom are deterred by high costs and regulatory risk.

Permitted Development Rights (PDR), once seen as a promising tool to ease the burden on the planning system, remain underused. Class MA (commercial to residential conversions) and Classes AA to AD (upward extensions) offer a faster, more flexible route to housing delivery—but uptake and approval rates are stubbornly low. In the 2023–24 year, Class MA applications accounted for just 0.04% of all planning submissions, while nationwide there were only 274 applications for upward extensions under Classes AA–AD.

The upcoming Planning and Infrastructure Bill 2025 presents an opportunity to turn this around. This briefing—prepared by Corbil Planning and the iHowz Landlord Association—outlines a pragmatic reform package and proposes targeted amendments aimed at realising the latent potential of PDR, while embedding quality and certainty through mandatory Local Design Codes.

Why Reform Matters Now

Despite growing demand, over 1.2 million homes with planning permission have not yet been built. Alongside this sits an estimated 700,000 empty homes across the UK. Unlocking even a portion of these would make significant headway toward meeting national housing targets.

But planning delays and inconsistent decision-making are eroding developer confidence. In Q1 2025, only 61,453 permissions were granted from over 90,000 applications—an all-time low. Meanwhile, SME developers, who are best placed to deliver infill schemes and localised conversions, are retreating from the market altogether.

PDR reform is not a silver bullet—but it is a shovel-ready opportunity to unlock homes quickly, affordably, and sustainably. Used properly, PDR can deliver good-quality housing in existing settlements with minimal public subsidy and without major new infrastructure.

Targeted Reform: Class MA and Classes AA–AD

The current application of PDR—particularly Class MA and Classes AA–AD—is riddled with arbitrary exclusions, vague conditions, and subjective decision-making by LPAs.

Key recommendations include:

Lift the blanket ban on PDR in Areas of Outstanding Natural Beauty (AONBs): Many AONBs include well-connected, sustainable settlements with viable underused commercial premises.
Clarify key conditions: Transport impact should relate only to highway safety, not wider policy matters like cycle parking. The ‘natural light’ requirement should be reframed as ‘satisfactory daylight’ and benchmarked to Design Codes.
Modernise outdated restrictions: For upward extensions, the prohibition on buildings pre-dating 1948 and those under three storeys is illogical. A rolling three-year age threshold would be more practical.
Permit combined use of Class MA and Classes AA–AD: Allowing upward extensions on buildings already converted via PDR makes efficient use of land and encourages comprehensive development.
Allow height flexibility for compliance: Features such as lift overruns—needed to meet modern accessibility standards—should not automatically disqualify a proposal.

These changes would give developers greater clarity and reduce the high refusal rates that currently deter uptake.

The Critical Role of Design Codes

One of the greatest weaknesses of the current PDR regime is the lack of certainty around what is, or isn’t, acceptable—especially when it comes to visual design and amenity standards. The introduction of mandatory Local Design Codes, as endorsed by the 2024 NPPF, would go a long way in addressing this.

Design Codes should:

Define acceptable parameters for height, massing, daylight and privacy
Include tools like density heat maps and PTAL-linked amenity tolerances
Be locally calibrated but nationally consistent in format and scope

By shifting decision-making away from subjective judgements and towards rule-based frameworks, Design Codes would reduce risk and delay for developers while maintaining quality and contextual sensitivity.

Delivery can be achieved through a blended public–private model, with the public sector setting the framework and private consultants supporting technical work. Additional planning fees on PDR applications—enabled under the Bill—could help offset implementation costs.

The Strategic Opportunity

Together, PDR reform and mandatory Design Codes offer a rare chance to address multiple problems at once:

Boost Housing Delivery: By removing barriers to conversions and upward extensions, we can make faster progress on meeting housing targets.
Support SME Developers: Simplified rules and lower risk make PDR more attractive for smaller firms who build out quickly and locally.
Enhance Planning Capacity: Reducing pressure on full planning routes allows planning officers to focus on strategic and complex applications.
Maintain Quality and Character: Design Codes ensure that accelerated delivery does not come at the cost of liveability or local distinctiveness.

PDR Uptake: Where We Are Now

Despite being on the statute book, Class MA and Classes AA–AD are rarely used. In 2023–24:

Only 1,535 Class MA applications were submitted nationally, with a 63% approval rate.
Just 274 applications were made for upward extensions; only 48% were approved.
LPAs with the most acute housing needs—such as Greenwich and Runnymede—often show the highest refusal rates, even where housing supply targets are unmet.

This mismatch suggests a systemic problem in how PDR is interpreted and applied. A more consistent, rules-based approach is urgently needed.

Conclusion: A Timely Opportunity for the Lords

As the Planning and Infrastructure Bill enters committee stage in the House of Lords, now is the time for targeted, practical amendments that unlock delivery and restore confidence. The proposed reforms to PDR—alongside mandatory Design Codes—offer a clear, deliverable path forward.

These changes will not solve every challenge in the housing system, but they represent one of the most immediate and impactful interventions available. With minor amendments, the Bill can: