November National Update

Economy: 

• Inflation rates: UK inflation rose to 3.5% in September, up from 3.1% in August, according to figures released on 21 October. Rising transport and fuel costs were the main contributors, with inflation remaining above the Bank of England’s 2% target.
• Interest rates: The Bank of England has maintained interest rates at 3.75%, with the next decision due on 5 November. Persistent inflation and higher energy prices continue to create uncertainty around future rate reductions.
• GDP growth: The latest figures, published on 15 October, show GDP grew by 0.1% in August, following 0.4% growth in July. Overall, the economy grew by 0.7% in the three months to August, although construction output fell by 1.0%.
• Pound sterling: Sterling is trading at approximately $1.34 against the US dollar and €1.20 against the euro, with markets continuing to respond to inflation, interest rate expectations and the Autumn Budget.
• House prices: UK house prices remained unchanged in October, with annual growth slowing to 0.5%, down from 0.8% in September. The average UK house price now stands at £273,566, according to Nationwide, reflecting continued uncertainty in the housing market.
• Unemployment rate: The UK unemployment rate fell slightly to 4.7% in the three months to August, although job vacancies continued to decline, suggesting businesses remain cautious about recruitment.

Activity and bills in Parliament:

• Building Safety (Remediation of Unsafe Cladding etc) Bill – The government introduced a new bill on 14 October aimed at accelerating the removal of unsafe cladding, strengthening building safety requirements and holding those responsible for defective construction products accountable. The bill forms part of wider efforts to address building safety concerns following the Grenfell Tower fire. 

• Autumn Budget (28 October) – Chancellor John Healey announced an additional £1.5 billion for social and affordable housing, taking total investment over the next 10 years to more than £40 billion. The Budget also announced changes to biodiversity net gain requirements for smaller brownfield housing schemes and new support for first-time buyers.

Other planning news:

• Local plan deadline extended: The government has extended the deadline for councils to submit local plans under the existing system from 31 December 2026 to 31 March 2027. To qualify, councils must complete their final Regulation 19 consultation by the end of December. 

• Building Safety Levy comes into force: The new levy came into effect on 1 October, introducing additional charges on certain residential developments to help fund the remediation of unsafe buildings. The levy adds another cost consideration for developers, although exemptions apply. 

• Natural England planning reforms: Natural England introduced a new approach to planning advice on 1 October, focusing its resources on complex developments with significant environmental implications. Greater reliance on standard guidance is intended to reduce delays for less complex applications. 

• Delays in discharging planning conditions: New research from the Home Builders Federation found that only around half of applications to discharge planning conditions were determined within the statutory eight-week period, raising further concerns about delays to housing delivery. 

• Permitted development rights expanded: New permitted development rights came into force on 21 October, allowing certain cross-pavement electric vehicle charging installations without planning permission, subject to restrictions and highway authority approval. 

• New first-time buyer support: The Autumn Budget announced the Your First Home scheme, a government-backed equity loan programme intended to help 70,000 first-time buyers onto the property ladder. The scheme is expected to launch in spring 2027. 

• Local government reorganisation: The government has confirmed plans to proceed with reorganisation in five areas: East Sussex and Brighton and Hove, Gloucestershire, Oxfordshire, Warwickshire and Worcestershire, subject to further representations. Decisions in 15 other areas remain under review, with new councils expected to be established in 2029 and shadow council elections in May 2028. 

• Planning digitisation: The government announced plans to require local planning authorities to digitise and publish key planning documents as open data by the end of 2027. It also intends to make its PlanAssist AI planning tool available to all councils in England by the same date, subject to further testing.