Brokers welcome permanent permitted development rights

The provisions of permitted development rights (PDR) have been popular with many developers because it has provided an opportunity to create residential units without the need for a planning application and is free from affordable housing obligations and other planning related financial obligations.

Simone Gilks, commercial director at Beauwater Group, said the move should incentivise lenders to offer finance of this sort again.

“Lending under PDR is complex and banks and lenders have put offering finance for this on hold as they felt the ruling could be overturned, but now that it has been made permanent I anticipate they will start lending again”, said Gilks.

“It provides a great opportunity for developers to turn abandoned offices and pubs into residential units and it’s fantastic to see changes to the landscape like this when housing is needed.

“Finance-wise, there’s a huge opportunity for both lenders and clients, so long as they seek advice on their rights from brokers as it can be difficult to understand.”

PDRs, first granted on a temporary basis in May 2013, were due to expire this May. However, for the expiration date to apply, existing provisions were required to have ‘begun’ by May 2016, giving rise to concerns regarding the interpretation of these rights and issues obtaining funding for the projects.

Amendments to PDR include some changes to the current system, including ruling that the development must be complete within three years of the prior approval date.