‍What is Permitted Development in Real Estate?

Permitted Development rights serve as a golden ticket for real estate aficionados. They empower property owners to make specific modifications to their asset without requiring full planning permission. This translates to a streamlined approach to property enhancements, driving up returns and property valuations.

Why You Should Consider Permitted Development in Real Estate

1. Faster Approval Process: Time is Money

• Swift Decision Timeline: With the clock ticking on expensive bridging loans with an annual rate of 12%, waiting for prolonged approvals can strain finances. Permitted Development (PD) only requires 56 days for a council decision. If there's no feedback within this window, the rights are granted by default. This swift timeline contrasts with traditional planning applications, which can span anywhere from 6 months to 2 years.
• Predictable Development Timeline: This fixed window provides developers with a clear, dependable timeline.
• Example: Acquiring a property for a loft conversion? With PD rights, kickstart the process promptly, leading to rapid profitability.

2. Enhanced Property Value with Strategic Improvements:

• Enhanced Property Value: Strategic PD modifications can exponentially boost property valuations. Enlarged living spaces or additional rooms can skyrocket the market appeal of your property.
• Example: Elevating a regular two-bedroom property with an additional bedroom can significantly upscale its market worth.

3. Clear-Cut Guidelines: No Guesswork Involved

• Objective Criteria: Say goodbye to the vagueness of traditional planning processes. Unlike traditional planning processes which can vary and be subjective, PD has set rules and criteria. It's easy to understand, regardless of the council in question.
• National, Not Local: This universal set of rules isn't council-specific, simplifying the learning curve.
• Quick Site Evaluation: Familiarity with these criteria allows developers to quickly assess potential sites. With the help of a spreadsheet, it's easy to determine if a site meets the required parameters.

4. Versatility: From Compact to Sprawling Sites

• Broad Applicability: Contrary to popular belief, PD isn't exclusive to smaller projects. While there's a 15,000m2 limit, there are creative solutions like splitting the building to maximize usage. 
• Cost and Time Efficiency: PD comes with the dual advantage of lower application fees and limited survey requirements, thereby slashing both costs and time. This, combined with the absence of s106 contributions, can lead to significant savings.
• No s106: This exemption from affordable housing contributions can save a considerable sum. Some councils, like Islington, might mandate up to £60K per unit with traditional planning applications.
• Combine PD with Traditional Planning: Once you've secured initial approval via PD, you can seek further enhancements through the traditional route. This layered approach often leads to smoother negotiations with councils.

5. Cost-Effective: Save on Fees and Avoid Red Tape

• An Ideal Starting Point for Newbies: If you’re making your maiden voyage into the vast ocean of real estate, PD can be a rewarding anchor. Its efficiency and simplicity make it especially favorable for beginners.
• Reduced Application Fees: PD typically incurs lower application fees than traditional planning.
• Limited Surveys Required: With traditional planning, councils might request an extensive range of surveys. PD, however, restricts these to just five key areas such as flood risk and noise, streamlining the process.

In conclusion, for those in the real estate domain, Permitted Development rights offer a faster, clearer, and more cost-effective path. Understanding and leveraging these rights can significantly optimise the development process.

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