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Planning gain

Adding value by obtaining planning permission, then selling or developing.

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In plain English

Land or buildings can be worth more once planning permission is granted. You pay for the application and consultants and take the risk that the council says no.

Switch to professional for underwriting detail.

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

  1. Identify sites with policy support.
  2. Pre-application advice.
  3. Submit application with full reports.
  4. Sell with permission or develop.

Financial calculations

Total sale value of the finished units — use sold evidence.

Get a cost consultant or contractor estimate.

SDLT, legal and agent fees on the land.

Development appraisal (residual land value)

Build cost£855,000
Professional fees£85,500
Contingency£64,125
Sales costs£30,000
Build finance (approx.)£52,743
Target profit£240,000
Residual before land costs−£167,368
Maximum land price£0
Land costs and finance£0
  • ⚠ 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

This guide is general research. It is not legal, tax, financial, planning or investment advice. Speak to a qualified, regulated professional before acting.