Permitted Development Rights – Everything Brokers and Borrowers Need to Know

Permitted development rights have dramatically impacted property development and investment in recent years. As part of the General Permitted Development Order[1], the latest amendments made in 2025 opened up how certain property types could be expanded, or converted.

As we continue to wrestle with the issue of how we get more housing stock to the market[2], permitted development rights are likely to be focused on once again. We need to build more, or otherwise make additional room for residential housing.

With this in mind, we thought it’d be worth going over the essentials. Starting with…

What are Permitted Development Rights?

As the government itself explains: “Permitted development rights are a national grant of planning permission which allow certain building works and changes of use to be carried out without having to make a planning application. Permitted development rights are subject to conditions and limitations to control impacts and to protect local amenity.”

Permitted development rights allow for certain works that used to require planning permission to go ahead without the need for formal approval. This can include extensions, adding storeys, and conversions.

While permitted development rights cover most of England, there are a few areas of the country known as “designated areas”. In these areas, permitted development rights are more restricted, and those living in the following locations or geographies would need to apply for planning permission for certain types of works which would not be required in other areas:

• A Conservation Area
• A National Park
• An Area of Outstanding Natural Beauty
• A World Heritage Site or
• The Norfolk or Suffolk Broads[3]

What Can Be Built Under Permitted Development Rights?

There are a handful of building types that permitted development rights apply to. Permitted development applies to houses and outhouses, and not flats or maisonettes[4]. Although, there are some exceptions and so borrowers should check in with their local authorities to ensure they’re on the right side of the rules.

To narrow down what’s applicable, we should also consider what kind of plans will always require planning permission. Currently, planning permission may be required where people plan to build something new, make a major change to their building, or change the use of their building[5].

Where permitted development rights and planning permission rules meet is the outward appearance of a property. There are strict rules in place to ensure new developments or upgrades are in keeping with the local streetscape[6]. Also, any changes can’t have a negative impact on neighbours, such as blocking their light. Specifically, the following projects or changes can be made without planning permission, so long as the right parameters are followed:

• Rear extensions
• Two storey extensions
• Side extensions
• Loft conversions
• Garage conversions
• Porches, garden rooms and outbuildings
• External render and/or cladding upgrades
• Building a new storey or flat

There are also permitted development rights for commercial properties, although the rules are much more complex. They tend to concern industrial, office, and or service industry extensions and for these, professional guidance will likely be required[7].

What property investors are more likely to concern themselves with when it comes to planning permission in the commercial world is conversions. Since 2015, it’s been possible (with prior approval from a local planning authority), to convert Class E commercial properties into residential homes, without formal planning permission. This includes offices, restaurants, shops, and gyms.

How to Apply for Permitted Development Rights

Generally, if the works involved are covered by permitted development rights, there is no need to apply for any kind of permission. But, some changes so require “prior approval” from the a local planning authority[8].

To find out if prior approval is needed, the local authority involved will need to be contacted – which is broadly a good idea ahead of any kind of project. It’s better safe than sorry.

While each local authority will have its own rules on what’s needed to determine if prior approval is needed, there are a few key details that could be requested. As the Planning Portal details[9]:

• The current and previous uses of the site/building, and when these uses started or finished. This may require you to research the history of the site/building. Uses are codified into ‘Use Classes’ by legislation.
• The proposed dimensions and placement (e.g. height; floor space; distance from boundary) and/or the dimensions of any similar work previously carried out. This may require research into the planning/development history of the site/building.
• If the site/building is in any specific or ‘designated’ areas (e.g. a conservation area). This may require people to check records provided by the local authority or government agencies.

It should be noted that with change of use projects, if no response from a local authority has been received within 56 days, the application is automatically deemed approved, with certain exceptions.

Raising Finance for Permitted Development Projects

There are many financial options open to those engaging with permitted development projects, as well as those that require planning permission. While we do not offer it here at Market Financial Solutions, ground-up development finance could be a suitable option for some borrowers. Some lenders may also offer specific permitted development loans.

Broadly, specialist finance can help with a range of permitted development plans. Acquisition finance is there to secure a property that’s primed for an upgrade or extension. Permitted & light development loans can be put towards the works. Refinance options are there for those who need to organise their affairs ahead of a major endeavour.

There are many ways in which specialist finance can help property investors with long-term vision.