Costs, Fees and Budgeting

How full application fees are calculated by units and area

7 min readBy PlanScope Editorial Team

Dwellings are charged per unit, other buildings on floorspace created, outline applications on site area. Mixed schemes add the categories together rather than merging them.

A full planning application fee calculation for new dwellings or new floorspace runs on two different bases, and using the wrong one is a common reason applications sit unvalidated. Houses are charged per dwelling, with a different arrangement above a threshold. Other buildings are charged on the gross floorspace created, in bands. Outline applications switch to site area. The figures themselves are set by the fees regulations and are indexed, so always calculate from the schedule in force on the day you submit.

The regulations are the Town and Country Planning (Fees for Applications, Deemed Applications, Requests and Site Visits) (England) Regulations 2012 as amended. They were uplifted in December 2023 and are subject to annual indexation, so a figure remembered from a previous project is unlikely to be right.

The two bases used for dwellings and for other floorspace

For the erection of dwellinghouses, the fee is calculated by reference to the number of dwellings created. Below a threshold set in the schedule, it is a flat amount for each dwelling. Above that threshold, the structure changes to a base figure plus an additional amount for each dwelling over the threshold, and the total is capped at a maximum.

For the erection of buildings other than dwellings, the fee is calculated on the gross floorspace to be created, in square metres, and it steps up through bands. Where no floorspace is created, a different category applies.

Two consequences follow for anyone working out a budget. A scheme of 15 flats is charged on unit numbers regardless of how large the flats are, so unit count is the only variable that matters. And a commercial building is charged on floorspace regardless of its use, so a warehouse and an office of the same area pay the same.

The householder fee is a separate, single category for alterations or extensions to a single dwellinghouse, and it does not interact with either of the bases above. Articles about householder fees are describing a different part of the schedule.

Where the banding steps fall

The structure of the schedule matters more than the current figures, because the structure stays stable while the amounts are indexed.

Application type Fee basis What drives the figure
New dwellings, below the threshold Per dwelling Number of dwellings created
New dwellings, above the threshold Base figure plus a rate per additional dwelling, subject to a cap Number of dwellings above the threshold
Other new buildings Bands of gross floorspace created Gross internal floorspace created, in m2
Outline, by site area Bands of site area, subject to a cap Site area in hectares
Householder alterations and extensions Single flat fee Not applicable
Change of use without building works Flat fee per category Not applicable

The step points are where errors cluster. A scheme that adds one dwelling across a threshold moves to a different calculation, and a building that creates one square metre above a band boundary moves up a band. Both are worth checking against the drawings before the fee is paid, because an underpayment of any amount means the application is not valid.

The Planning Portal fee calculator is the practical tool for this and uses the current schedule. Use it, and keep the printout with the application, because it is the quickest way to resolve a dispute with a validation officer.

Outline applications and the site area basis

Outline applications are charged by site area rather than by units or floorspace, in bands of hectares, with a cap. That makes the red line boundary a direct cost item.

Two points of practice follow. First, the site area for fee purposes is the area within the application boundary, so land included for access, landscaping or drainage that is not strictly needed increases the fee. Second, reducing the red line to save fee is a false economy if it excludes land you need for access or for an off-site connection, because adding it later means a fresh application rather than an amendment.

Reserved matters applications are charged differently again, and where the full fee has already been paid at outline stage the schedule provides for the reserved matters application to be charged at a flat rate rather than recalculating the whole scheme. Check that category rather than assuming a second full fee is due.

Mixed schemes and how the bands combine

Mixed use schemes are where arithmetic goes wrong most often, and the rule is less complicated than it looks: the fee for an application covering more than one category is generally the sum of the fees for each category, calculated separately.

So a scheme of 40 flats over 900 m2 of commercial floorspace pays the dwellings fee for 40 units plus the floorspace fee for 900 m2. The two are not merged into a single calculation, and the commercial floorspace does not count towards any dwellings threshold.

Three practical checks on a mixed scheme.

  1. Count dwellings as dwellings, not as floorspace, even where they sit in the same building as the commercial element.
  2. Measure the commercial floorspace as created, gross internal, excluding the residential areas.
  3. Apply any relevant cap only to the category it belongs to.

Where the scheme includes demolition, the removal of floorspace does not generate a fee and does not offset the fee for what is created.

Measuring site area and floorspace for fee purposes

The two measurements that drive the fee need to be consistent with the drawings, because a validation officer will check them against the plans rather than taking the figure on the form.

Site area is measured as the area within the application red line, in hectares, and should be stated on the location plan or in the covering letter. Where the site is irregular, give the figure to two decimal places and say how it was derived.

Floorspace is the gross floorspace to be created. Where an extension is proposed, that is the new floorspace, not the resulting total. Where a building is demolished and replaced, it is the floorspace of the new building. Internal floor to floor levels, mezzanines and plant rooms all count where they are floorspace, and getting the measurement from the architect's schedule of areas rather than scaling from a drawing avoids a disagreement.

State the basis you used on the application or in a short note. An officer who can see the arithmetic rarely queries it.

Arithmetic errors that stop validation

The recurring errors are mundane and all of them cost a week or more.

Paying the householder fee for a scheme that creates a new dwelling, which happens on annexe and outbuilding conversions where the applicant does not regard the result as a new house. Counting units rather than dwellings on a scheme including a flat over a shop. Using a superseded fee figure from an earlier project or an out of date council web page. Applying the cap to the wrong category on a mixed scheme. Omitting the site area on an outline application. And submitting with the fee short by a small amount after the schedule was indexed on 1 April.

Where a fee is underpaid, the application is not valid and the clock does not start. Where it is overpaid, the council refunds it, which is an easier problem to have.

A short note explaining the calculation, attached to the Planning Statement or the covering letter, resolves most queries before they are raised. Related work on off-site affordable housing payments and the calculation shows the same principle applied to a different figure: set out the arithmetic and the inputs rather than the result alone.

Checking the schedule in force on the day you submit

Fees are indexed annually, with the uplift taking effect at the start of April, and the regulations are amended from time to time beyond that. So the only reliable figure is the one in force on the submission date.

Three habits deal with it. Calculate the fee in the week you submit rather than when you prepare the budget, and allow for an increase in any estimate given months ahead. Use the current fee schedule or the Planning Portal calculator rather than a council web page, which may not have been updated. And where a project straddles the start of April, either submit before the uplift or budget for the higher figure.

For budgeting purposes the application fee is usually the smallest line in the cost of an application. The supporting documents cost more, and you can see which reports your scheme is likely to need and what drafting them yourself would cost on the pricing page.

This is general guidance, not legal advice, and planning fees are set by regulations that are amended and indexed. Check the schedule in force on the day you submit, or ask your local planning authority, before relying on any figure. PlanScope provides AI-assisted draft reports for planning applications. Reports should be reviewed before submission. We do not guarantee planning approval.

Frequently asked questions

Is the fee for new houses based on units or floorspace?

On the number of dwellings created. Below a threshold in the fees schedule it is a flat amount per dwelling, and above it the structure changes to a base figure plus a rate for each additional dwelling, subject to a cap. The size of the dwellings makes no difference to the fee.

How is an outline application fee calculated?

By site area in bands of hectares, subject to a cap, measured as the area within the application red line. Land included for access, landscaping or drainage counts towards it, so an unnecessarily wide red line increases the fee. Reserved matters applications are charged under their own category rather than recalculated in full.

How do fees work on a mixed use scheme?

The fee is generally the sum of the fees for each category calculated separately. A scheme of flats over commercial floorspace pays the dwellings fee for the units plus the floorspace fee for the commercial area. The commercial floorspace does not count towards any dwellings threshold, and caps apply only within their own category.

What happens if I underpay the fee?

The application is not valid, so the determination period does not begin and the council will ask for the balance before registering it. In practice that costs a week or more. Overpayment is refunded, which is the easier error to make. Calculating from the current schedule in the week of submission avoids both.

How often do planning fees change?

They are indexed annually with the uplift taking effect at the start of April, and the regulations are also amended from time to time. Calculate from the schedule in force on the day you submit rather than from an earlier project, and where a submission straddles April either go in before the uplift or budget for the higher figure.

Sources and further reading

planning feesapplication feeoutline applicationmixed usevalidationbudgeting

This article is general guidance about the planning system in England and, where stated, the rest of the UK. It is not legal or professional advice. Check your local planning authority’s validation requirements and take professional advice for your specific site.

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