New Referral Requirement for Proposed Refusals of 150+ Home Schemes

The Government has introduced a new requirement for local planning authorities in England to consult the Secretary of State before refusing certain large housing schemes. The change is intended to give Ministers the opportunity to consider whether to “call in” applications that could make a significant contribution to housing delivery.

The new rule is contained in the Town and Country Planning (Consultation) (England) Direction 2026, published on 31st March 2026. It applies to planning applications for development which includes 150 or more houses, flats, or a mix of houses and flats, where the application had not been determined before 11th May 2026.

In practical terms, where a Local Planning Authority (LPA) is minded to refuse a qualifying application, it must consult the Secretary of State (SoS) for Housing, Communities and Local Government before issuing the decision. The LPA must send the Planning Casework Unit the application documents, plans, supporting information, representations, Officer Report, and the proposed reasons for refusal.

The authority must then wait at least 21 days before determining the application. This gives Ministers requisite time to decide whether to exercise the Secretary of State’s existing call-in powers.

What the Change Entails

The Direction does not mean that every proposed refusal of a 150+ home scheme will automatically be decided by the Secretary of State. Rather, it introduces a mandatory referral (consultation) stage before an LPA can issue a refusal. Once notified, the Secretary of State will consider the application, any representations submitted, the officer’s report and the LPA’s proposed reasons for refusal if not in the officer’s report, and the Secretary of State’s policy on calling applications to determine whether the application raises issues that justify intervention through the exercise of the call-in power. There is no automatic right to a call-in, and the Secretary of State retains a broad discretion in deciding whether to intervene.

If the Secretary of State decides not to call in the application, the LPA may proceed to determine the application, including by issuing the refusal. If the application is called in, the Secretary of State becomes the decision-maker and appoints a Planning Inspector to examine the proposal.

The rule is not limited to “unreasonable” refusals or to allocated housing sites. The trigger is broad: it applies where an LPA proposes to refuse an application for 150 or more dwellings and the application falls within the scope of the Direction.

Why has the Government Introduced this?

The measure forms part of the Government’s wider programme to increase housing delivery and infrastructure provision. In the Written Ministerial Statement of 23rd March 2026, the Secretary of State stated that the new Direction would support housebuilding by requiring LPAs to consult the Secretary of State where they intend to refuse schemes of 150 dwellings or more.

The Direction sits alongside wider changes to planning decision-making and call-in arrangements, including separate consultation proposals relating to large commercial development and other categories of development.

Legislative Background

The new referral requirement has three main components: Section 77 of the Town and Country Planning Act 1990; the Town and Country Planning (Development Management Procedure) (England) Order 2015, as amended in 2026; and the Town and Country Planning (Consultation) (England) Direction 2026.

Section 77 is the Secretary of State’s existing call-in power. It allows the Secretary of State to take over determination of a planning application from the local planning authority. The new rules do not create that power, but they do give the Secretary of State an automatic opportunity to consider using it before an LPA refuses certain large housing schemes. Unless the application is called in, the LPA remains the decision-maker.

The 2015 Development Management Procedure Order sets the procedural rules for planning applications, including consultation requirements. Article 18 deals with cases where an LPA must consult another body before making a decision. The 2026 Amendment Order, which came into force on 26th March 2026, amended article 18(5) so that consultation requirements can apply before an application is determined, rather than only before permission is granted. This enables consultation directions to apply where an LPA is minded to refuse an application.

The new consultation requirement itself is contained in the Town and Country Planning (Consultation) (England) Direction 2026, published on 31 March 2026. This is the document that requires LPAs to consult the Secretary of State before refusing qualifying applications for 150 or more homes.

London Applications

There is a specific provision for Greater London. Where the Mayor of London’s consultation regime applies, consultation with the Secretary of State is only required where the Mayor’s Order does not prevent, or no longer prevents, the LPA from determining the application, or where the Mayor has directed the authority to refuse it.

Implications for Developers and Landowners

For applicants promoting schemes of 150 homes or more, the Direction creates an additional safeguard before refusal. It may make LPAs more cautious about refusing large housing schemes without robust and defensible reasons, particularly where a proposal would make a meaningful contribution to housing supply.

However, the change should not be viewed as a substitute for a strong planning case. The Secretary of State is not required to call in every referred application, and the LPA may still refuse the application if it is not called in.

Applicants should therefore continue to ensure that applications are supported by robust technical evidence, a clear approach to planning balance, and a strong response to any likely reasons for refusal. The proposed reasons for refusal sent to the Secretary of State may become central to whether call-in is considered appropriate.

A call-in will usually result in a public inquiry. Following the examination, the Inspector prepares a report and recommendation, but the final decision rests with the Secretary of State, who may grant or refuse planning permission.

The Secretary of State has called in a number of planning applications since the direction took effect including:

  • 300 homes in the Green Belt in Uttlesford – public inquiry
  • 180 homes in the Green Belt in Uttlesford –public inquiry
  • 180 homes in Forest of Dean – procedure to be advised
  • 234 dwellings in Guildford – public inquiry
  • Up to 150 dwellings in Gravesham – public inquiry

Anecdotal evidence from recent committee meetings indicates that when officers have advised members of the need to refer planning applications for 150+ dwellings to the Secretary of State at, further consideration has been given to whether members wished to pursue refusal of the application, with applications then being approved.

Key Practical Points

For clients promoting larger residential schemes, the main points are:

  • The rule applies to applications including 150 or more dwellings.
  • It applies to qualifying applications not determined before 11th May 2026.
  • An LPA minded to refuse must first consult the Secretary of State.
  • The LPA must wait at least 21 days before determining the application.
  • Referral does not guarantee call-in or approval. It gives Ministers the opportunity to consider whether to intervene.
  • Applicants should be ready to make the case for why any proposed refusal raises issues of more than local importance, particularly where the scheme would materially assist housing delivery.
  • Applications should be robust and ensure that all potential issues have been covered, including responding to issues raised by consultees

Conclusion

The new Direction is a significant procedural change for large residential planning applications. It does not remove local decision-making, but introduces a new layer of central government oversight where an LPA is minded to refuse a scheme of 150 homes or more.

For developers, landowners and promoters, this may provide a useful route to further scrutiny before a refusal is issued. It may also influence committee strategy, officer engagement and the preparation of late-stage representations where refusal appears likely.

The key message is that applicants should not wait until committee to address the issue. For any scheme at or above the 150-home threshold, the application should be prepared from the outset on the basis that, if refusal is recommended or members wish to refuse against officer recommendation, the application together with any proposed reasons for refusal may be reviewed by the Secretary of State before a decision is issued.

Suzanne Bangert
Technical Director
BA(Hons) MPhil MRTPI


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