"Whilst properties delivered to market with the aid of PDR account for a small proportion of total net additional dwellings, we have seen a growing trend in the last year, and if current trends continue, this should reach 195,000 new homes by the end of this Parliament"
- Alasdair McPherson - Rangewell
Specialist property finance firm Rangewell has outlined a 10-point strategy to make permitted development rights (PDR) more attractive to developers, as its latest research indicates that although the use of PDR is increasing, it still accounts for only a small share of overall housing delivery.
According to Rangewell, developers are becoming more comfortable with using PDR to bypass traditional planning routes, recognising the advantages of quicker, cheaper, and simpler funding access. However, uptake remains limited. The firm estimates that, if better utilised, PDR could contribute up to 185,000 new homes by 2029, significantly faster than through standard planning processes.
Permitted development rights enable certain types of property developments, most commonly changes of use, without the need for full planning permission. This can reduce delays, cut costs, and bring housing to market more efficiently.
Searchland data shows that in some areas, such as Richmondshire, traditional planning decisions can take over a year, with the average timeline reaching 415 days. In contrast, prior approval applications under PDR are generally assessed within 56 days, and if no decision is issued, approval is automatically granted.
Despite this, PDR schemes currently represent only a small fraction of housing completions. Government figures for 2023/24 show that just 4% of all net additional dwellings in England were delivered through PDR, although the figure varies by region - from 8% in the South East to just 1% in the North East.
The impact of PDR is most visible in conversions, such as transforming agricultural buildings, offices, or retail premises into residential use. In 2023/24, PDR accounted for only 0.4% of new-build completions but 41% of all net additional dwellings resulting from changes of use.
National housing supply figures have remained broadly static over the past year. In 2023/24, 160,390 homes were completed across England. That figure dipped slightly to an estimated 159,387 in 2024/25, suggesting that Labour’s goal of delivering 370,000 homes annually will require substantial intervention.
While overall output has stagnated, Rangewell reports a notable increase in the number of developers leveraging PDR in the past year. Applications for finance on Class AA–AD schemes, which enable the construction of up to two additional storeys on existing buildings, have increased by 173%. Class MA applications. converting offices and retail space into homes, are up by 217%, while Class Q conversions of agricultural buildings have risen by 91%.
Rangewell believes that further government incentives could enhance uptake and support Labour’s housing delivery ambitions. To that end, the firm has developed a 10-point plan to improve the appeal and impact of PDR:
Implement a national 28-day fast-track for Prior Approval, granting automatic consent to low-risk proposals.
Permit modest external alterations, such as stairwells, balconies, and rear extensions, to enhance the quality and layout of converted homes.
Offer capital allowances or business rates holidays for vacant commercial properties converted via PDR.
Align tax incentives, including VAT relief and stamp duty discounts, to make marginal projects financially viable.
Expand unit allowances, enabling larger barn conversions and more units above shops.
Encourage green rooftop additions, including solar panels and rooftop gardens, where design impact is minimal.
Extend PDR to Article 4 and conservation zones, easing restrictions in high-vacancy locations.
Permit limited demolition under Class Q, allowing structurally unsound barns to be partially rebuilt while retaining their original footprint.
Broaden the scope of Class MA, incorporating uses like clinics, light industrial units, and sui generis spaces such as laundrettes.
Support flexible living arrangements, including live-work and co-living formats, by introducing dedicated PDR sub-classes.
The firm highlights a growing appetite among lenders to support PDR projects, with over 50 institutions now actively offering finance tailored to such developments. This, Rangewell suggests, has created a more competitive landscape, with funding options that are often faster, more flexible, and more profitable than those tied to traditional planning approvals.
“Developers are becoming more commercially aware of the benefits of PDR and we’re funding more schemes that bypass full planning, reduce costs, and get homes to market faster,” said Alasdair McPherson, head of partnerships at Rangewell. “The ability to skip the full planning process is hugely appealing, particularly with interest rates, labour, and materials all still elevated.”
He continued, “Of course, the cost saving available to them is one key reason; however, for many, it’s the enhanced profitability, and the increased speed at which they can deliver homes to market that is the most attractive aspect, as they are able to bypass the often protracted planning application process.”
“Whilst properties delivered to market with the aid of PDR account for a small proportion of total net additional dwellings, we have seen a growing trend in the last year, and if current trends continue, this should reach 195,000 new homes by the end of this Parliament,” McPherson added. “However, we believe that more could be done to further incentivise developers in order to boost housing delivery levels using PDR.”
“For example, the government could look to ease restrictions around change of use, particularly with respect to agricultural properties. Then there’s tax incentives and the streamlining of the red tape process, two areas that will always peak developer interests for the better.”
