Hikes in planning fees in Wales could mean that even more developments are put on hold or stalled, according to Savills’ Cardiff office.

The 4.2% increase on average in the fees for submitting planning applications are due to come in next week.

Geraint John, head of planning at Savills Cardiff, said: ‘Based on what happened in England, where the new fees were introduced last year, we expect these changes to hit developers harder than homeowners.

‘For instance, developers submitting outline applications may now have to pay a maximum of £125,000 up from £25,000. Detailed applications could cost a maximum of £250,000 up from £50,000.

‘Combined with the strangulation of finance from the banks and declining land values, this is another deterrent and may have a significant impact on development in Wales in the coming months.’

The fee increase has been introduced to fund local authority planning services improvements in Wales and remain in force until April 2010.