Home Improvement Barometer – Summer 2026 Edition
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A new report from Planning Portal, which handles the submission of 95% of planning applications in England and Wales, shows that London homeowners are the most likely to seek permission to make their properties significantly larger.
The findings are published in Planning Portal’s inaugural Home Improvement Barometer, which explores regional trends in home improvement planning applications and provides insights into the renovation potential of properties across England and Wales.
Where are homeowners most likely to extend their properties?
While smaller home extensions can often be carried out under permitted development rules and don’t require planning permission, larger extensions – such as those that add a storey to a home or extend it more than three metres from the existing home - require prior approval.
The data shows that prior approval applications for larger extensions are most prevalent in London and the South East.
Larger home extension applications by region (since 2023)
The South East has the highest number of overall householders planning applications, with129,755 recorded since 2023. This is equivalent to around five applications per100 homeowners. London has the highest application rate relative to itshomeowner population, with seven applications per 100 homeowners.
At the other end of the scale, the North East has seen the fewesthouseholder applications since the start of 2023 with 13, 295. This is fewerthan four applications for every 100 homeowners. Wales has the second-lowestrate, at just over four applications per 100 homeowners.
Planning Portal has recently introduced a range of new tools and features designed to help homeowners better understandthe renovation potential of their properties. These include a householder insights toolthat quickly assesses the likelihood of gaining approval for projects such aslarger home extensions and loft conversions, as well as an interactive, AI-powered assistant that helps first-timeapplicants understand planning regulations in clear, conversational language.
It’s hoped these enhancements will make iteasier for homeowners to assess the renovation potential of their properties,giving them greater confidence to apply for planning permission or pursueprojects that fall under permitted development. In turn, this could helphomeowners make the most of their properties and add meaningful value, whilenavigating ongoing cost of living pressures and fluctuations in the housing market.
Geoff Keal, CEO at TerraQuest, the operator of Planning Portal, said: “It’s significant that the homeowners undertaking thebiggest expansions are concentrated in those areas where house prices arehighest. This may reflect the fact that people who need more space in theseareas also face substantial up-front costs when moving home, including stampduty that can make moving challenging.
He added: “High property values can sometimes make it more feasible tofinance renovations, with the cost of an extension representing a smallerproportion of the overall value of the property.
“Our findings suggest that, in areas where property prices are highest, homeowners may find it more economically sustainable to increase the floorspace of their existing home than to move.
More broadly, the data highlightshow economic conditions shape homeowners investment decisions, with strongerdisposable incomes enabling more ambitious projects, while tighter conditionsmay encourage more modest improvements.
For homeownersconsidering a larger project, Brian Berry, Chief Executive of the Federationof Master Builders (FMB), said: “For bigger projects make sure that you have a written contract in place, clear payment milestones, and secure renovation insurance – sometimes home insurance providers cover this. Be aware that larger projects can also present more issues as the project progresses but a good builder, particularly a Master Builder through the FMB, will be prepared for this.”
Tom Rowlands, Managing Director at Pure Property Finance, added: "Homeowners should consider the full financial implications of a renovation and seek professional financial advice early. Understanding the total costs,affordability and available funding options before committing to a project isessential, as the right finance structure can provide greater certainty and help avoid unnecessary pressure on cash flow".
Dila Gokalp; Director,Architectural Designer and Town Planner at Homz, said: "Before deciding to move, homeowners should weighthe full cost of moving, from stamp duty to fees and disruption, against whattheir current home could become. Often the space they need is achievablethrough an extension or loft conversion, provided the planning groundwork isdone properly from the start".
The Home Improvement Barometer includes expert insights from Planning Portal’s qualified planning professionals to help homeowners understand the planning requirements they need to know about before extending their homes.
