Planning gain
Adding value by obtaining planning permission, then selling or developing.
Professional analysis
Value = residual with permission − price paid − planning costs, risk-weighted by probability of consent. Review the local plan, recent decisions nearby (planning applications data, where licensed), and constraints. A possibility of permission is not a permission.
Capital requirements
Purchase or option price plus planning costs.
Cost assumptions to budget for
- Application fees
- Architect and consultant reports
- Appeal costs if refused
Potential returns
Binary outcome; model a refusal scenario.
Main risks
- Refusal
- Onerous conditions or s106
- Policy changes
Legal checks
- Option/conditional contract drafting
- Title restrictions on development
Regulatory checks
- Local plan, NPPF, constraints
Is it suitable?
Often suits
- Planning-literate investors
Usually not suitable for
- Anyone needing certain returns
A general guide, not a personal recommendation. Suitability depends on your finances, experience and attitude to risk.
Step-by-step
- Identify sites with policy support.
- Pre-application advice.
- Submit application with full reports.
- Sell with permission or develop.
Financial calculations
Development appraisal (residual land value)
- ⚠ The scheme does not reach the target profit at any land price with these inputs.
- ⚠ A simplified appraisal. Lenders and valuers use full cashflow appraisals; planning permission is not assumed.
Every figure above comes from the assumptions you entered. This is not a valuation, mortgage offer or financial advice.
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Official sources
Last reviewed 31 Oct 2026. Rules change — check the source before relying on this guide.
Not advice