Why planning consent alone does not make your land valuable

There is a common assumption among landowners thatobtaining planning consent is the hard part, and that once you have it, thevalue follows automatically. In our experience, that assumption is responsiblefor more wasted money and missed opportunities than almost any othermisconception in the land and development industry.

Planning consent is necessary. But on its own, it is notsufficient. What determines the value of your land is not whether you have aconsent — it is whether that consent is deliverable.

What makes a consent deliverable

A deliverable consent is one that a developer canactually build. That means the scheme needs to work commercially: the numberand type of homes must reflect local market demand, the construction costs mustbe realistic, the infrastructure requirements must be fundable, and theconditions attached to the consent must be dischargeable withoutdisproportionate cost or delay.

It also means the consent needs to be practicallybuildable. A permission for 15 homes is worth very little if the access cannotbe constructed without acquiring third-party land, or if the drainage strategyrelies on infrastructure that does not yet exist, or if the affordable housingobligation makes the scheme unviable at current build costs.

The gap between theoretical and deliverable permission

We regularly see sites where a landowner or theirprevious advisor has obtained planning consent without considering whetheranyone would actually want to buy it. The consent exists on paper, but thedeveloper who looks at it sees problems: conditions they cannot discharge,infrastructure costs that were not accounted for, or a scheme design that doesnot match what the market wants in that location.

The result is a site that either does not sell, sells forsignificantly less than the landowner expected, or requires a fresh applicationto fix the problems — adding cost and delay to a process that should have beenright the first time.

Why viability should be tested before you apply

The planning application is not the starting point. Thestarting point is understanding what the market wants, what can be builteconomically, and what deal structure will work for the landowner. Only oncethose questions are answered should anyone submit an application.

This is where planning consultancy and developmentconsultancy need to work together. A planning consultant who does notunderstand development economics may secure a consent that looks impressive onpaper but fails commercially. A development consultant who does not understandplanning risk may promise land values that the planning system will notsupport.

At DDR, we test every site against viability anddeliverability before we recommend applying. That means assessing build costs,market values, infrastructure contributions, affordable housing requirementsand the likely conditions the local authority will impose. If the numbers donot work, we adjust the scheme before it is submitted — not after.

What this means for you

If you are thinking about applying for planningpermission on your land, or if someone has approached you with a proposal to doso, ask one question before anything else: has anyone checked whether thisconsent will be worth what they are telling you it will be worth?

A planning application fee, consultant costs and monthsof your time are a significant investment. That investment should be directedat a consent that commands a premium — not one that sits in a drawer becausenobody tested the commercial reality before submitting it.

How we approach it differently

DDR & Partners exists specifically to close the gapbetween planning theory and commercial reality. Every application we prepare istested against development viability from day one. The same team that assessesthe planning potential also understands the deal structures, the marketconditions and the buyer expectations that determine what your land is actuallyworth.

If you have land and want to understand its realdevelopment potential — not just the theoretical planning position, but thedeliverable commercial value — we are happy to have that conversation. It costsnothing and it might save you a great deal.

‍