The RTPI-commissioned report by Public First, called ‘The Planning Premium’, argues that sustained underinvestment could lead to a ‘planning premium’ being missed.

This term refers to the added value of good town planning — contributing to the development of vibrant and safe communities — which the Institute estimates to be potentially worth just shy of £50bn over a 10-year period.

In addition, the RTPI estimates that utilising the power of planning to deliver new housing could lead to productivity growth of £23bn over the next decade.

And, should higher housing targets be achieved, this total premium has the potential to rise to more than £90bn, according to the report.

The research follows recent housing pledges made by the major political parties in the run up to July’s general election.

•   Over 4,000 construction insolvencies in past year
•   Number of construction companies in 'significant' financial distress soars by 38.6%
•   Construction output slows to lowest level since June 2022

While parties made promises to boost housing delivery, previous research by the RTPI highlighted the “dire state” of public sector planning in the UK.

The institution’s analysis found there had been a 16% reduction in public spending on planning since 2009.

Between 2013 and 2020, one-quarter of planners left the public sector, according to RTPI’s research last year.

“This report comes at a time when homebuilding needs to accelerate rapidly to address the housing affordability crisis,” said Victoria Hills, CEO at the RPTI.

“It shows us the true value of planning when done well, and how it can deliver not just the housing the UK desperately needs, but provide value for money and quality of life to communities.”

Ed Dorrell, partner at Public First, added: “Our work demonstrates that far from being part of the problem, planners can be part of the solution.”