New planning rules – what do they mean for SME property developers?

Back to Articles 12 November 2026 7 minute read

Developer

On 31 October 2026, new rules governing how planning applications are determined in England came into force. We examine the changes and their practical implications for SME property developers.

Known as the National Scheme of Delegation, the reforms give professional planning officers responsibility for more decisions, reducing the number of applications referred to planning committees.

Planning delays can increase holding costs, disrupt project programmes and create uncertainty around funding. The new framework aims to make decision-making more consistent and reduce unnecessary delays.

The changes are particularly relevant to smaller residential developments, but also affect larger schemes, property conversions and technical planning applications.


What has changed in the planning process?

Previously, local planning authorities operated their own arrangements for deciding which applications were determined by officers and which went to planning committees.

The National Scheme of Delegation introduces a consistent framework across England, with applications broadly divided into two categories:

Applications can no longer be automatically referred to committee solely because a councillor requests it or a specified number of objections have been received.

The Government intends planning committees to focus on proposals raising significant local issues, while officers handle more routine decisions.


How do the changes affect smaller residential developments?

One of the most significant changes for SME developers concerns applications for one to nine homes on sites smaller than 0.5 hectares. These generally fall within Schedule 1, meaning decisions are made by planning officers rather than committees.

For example, an application for six new homes on a 0.3-hectare site would normally be determined by an officer, provided it meets the relevant criteria. Exceptions apply, including certain applications connected to listed building consent and applications in which the local authority, its officers or councillors have an interest.

Removing routine committee referrals could make the process more predictable and reduce delays associated with committee meeting schedules. However, the time needed to secure permission will still depend on the individual application.


What happens to larger and more complex developments?

Larger residential schemes generally fall within Schedule 2, where officer determination is the default but committee referral remains possible. Referral requires agreement between a nominated planning officer and committee member that the application meets the relevant criteria.

These include proposals raising significant economic, social or environmental issues, or important planning matters relating to the development plan and other material considerations. For example, a substantial residential development with significant implications for local infrastructure may still warrant committee consideration. However, the size of a development alone does not automatically require referral.


What do the reforms mean for property conversions and technical applications?

The changes extend beyond new-build housing. Many technical applications now fall within Schedule 1 and must generally be determined by planning officers. These include:

This could benefit developers undertaking refurbishments, property conversions and phased developments.

For example, converting a commercial property into residential accommodation may involve prior approval under permitted development rights or additional planning consents. Where these fall within Schedule 1, decisions will generally be delegated to officers.

Not all property conversions automatically qualify. Applications requiring full planning permission for a change of use, or involving listed building consent, may fall within Schedule 2 rather than Schedule 1. Developers should therefore confirm how their particular application is classified.


Could the changes reduce planning delays and development costs?

Reducing unnecessary committee referrals could offer several benefits for SME developers:

However, these are potential benefits rather than guaranteed improvements.

Applications must still satisfy relevant planning policies and material considerations. Consultation, technical assessments and negotiations can continue to affect timescales. The reforms change who determines planning applications, not the requirements for obtaining permission.


What should SME developers consider when preparing applications?

Careful preparation remains essential, regardless of who determines an application.

Developers should consider the following:

Early engagement with planning consultants and the relevant local planning authority can help identify issues before they affect project delivery.


What do the changes mean for the future of planning?

The National Scheme of Delegation represents a significant change in how planning decisions are made in England. By transferring more decisions to professional planning officers, the Government aims to establish a more consistent and efficient system. Planning committees will retain a role in determining proposals that meet the criteria for referral.

The reforms also raise questions about balancing faster decisions with local democratic oversight. For SME developers, the potential benefits are greatest where committee referrals have previously contributed to delays. However, the effectiveness of the reforms will depend on how they operate in practice, including the capacity of local planning authorities to assess applications promptly.

Successful development will still require careful site assessment, realistic appraisals, appropriate professional advice and a clear funding strategy.


Further reading and resources

MHCLG – National Scheme of Delegation statutory guidance
MHCLG – Government response to planning committee reform consultation


Other articles you may find interesting

Nature Restoration Fund – what does it mean for SME developers?
National Planning Policy Framework – does your site appraisal still stack up?
How to prepare your project for funding – a guide for SME property developers


Ready to discuss your next project?

At CrowdProperty, we understand the practical challenges involved in delivering property developments, from planning and acquisition through to construction and sales.

Our experienced team provides specialist development finance for SME property developers across England and Wales, including new-build developments, property conversions and refurbishment projects.

Whether you’re assessing a new opportunity or preparing to progress an existing development, we’re here to discuss your funding requirements. 

Call 0203 012 0166 or contact our Direct Team to discuss your next project. 

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