September National Update

Economy:

• Inflation rates: The current inflation rate is 2.9%, an increase from the previous months rate of 2.6%. This is down to the continuing impact of international politics and the Middle east war, and the rise was predicted by the Bank of England (BoE).
• Interest rates: UK interest rates have been held at 3.75% by the BoE mainly due to the current high inflation, which is expected to continue.
• GDP growth: GDP grew by 0.4% in Q2 of 2026, slowing slightly from the 0.6% growth recorded in Q1.
• Pound sterling: The pound sterling is trading at approximately $1.35 US Dollars and €1.17 Euros, stabilising after pulling back from recent six-month highs as markets react to shifting global interest rate policies.
• House prices: The average UK house prices rose by 0.2% to £275,465 in August 2026. This marks the first monthly increase since April 2026 according to The Guardian report on Nationwide data.
• Unemployment rate: The unemployment rate has stayed at 4.9%, defying expectations of a slight increase.  

Activity and bills in Parliament:

Parliamentary activity was reduced in August due to the summer recess, with the House of Commons rising on 16 July and not returning until 1 September. Therefore, there was little activity on planning-related legislation, with most private members’ bills and wider policy debates expected to resume when Parliament returns in September.

Other planning news:

• New NPPF published – The government published its new National Planning Policy Framework on 17 August, with decision-making policies taking immediate effect. Key changes include a stronger “default yes” approach for housing near well-connected stations, clearer national decision-making policies, support for higher densities, and further changes to statutory consultee requirements. 

• Homes near transport hubs – Angela Rayner announced new planning rules to fast-track homes within walking distance of well-connected train, tram and underground stations. The government says the changes are intended to make better use of underdeveloped land around stations and support housing delivery in sustainable locations. 

• High street planning controls – The government announced plans to require planning permission for new vape shops and adult gaming centres, alongside changes intended to give councils more control over new betting shops. The measures are framed as part of a wider high street revival agenda and are expected to come forward from next year.

• Biodiversity Net Gain changes – New BNG exemptions came into force on 6 August, including an exemption for developments of 0.2 hectares or below and certain temporary developments. The changes are intended to make the regime more proportionate for smaller schemes, although BNG remains a live consideration for most non-exempt development.

• Shadow Cabinet reshuffle – James Cleverly has stepped down as shadow housing secretary to seek the Conservative nomination for London mayor, prompting a wider reshuffle by Kemi Badenoch. Katie Lam (MP for Weald of Kent) has been appointed shadow secretary of state for housing, communities and local government, replacing Cleverly and taking on the housing and planning brief.