Unlocking Opportunity with Permitted Development: How Finance Can Power Your Next Property Project
In the ever-evolving UK property landscape, savvy investors and developers are constantly looking for ways to maximise value and streamline the planning process. One of the most effective tools at their disposal is Permitted Development Rights (PDR). These rights allow certain types of property development and conversions to go ahead without full planning permission, making it faster, cheaper, and more efficient to create or enhance property assets.
Whether you're converting an office building into flats, extending a home, or repurposing a retail space, permitted development offers a powerful route to increased value. But like any property venture, success relies not only on opportunity—but also on having the right finance in place.
At FundMyProperty, we help investors and developers take advantage of permitted development opportunities by offering specialist finance solutions designed for speed, flexibility, and growth.
What Is Permitted Development?
Permitted Development Rights are a set of planning rights granted by the UK government that allow certain building works and changes of use to be carried out without the need to apply for full planning permission.
These rights aim to simplify the development process, encourage the reuse of existing buildings, and support housing supply and regeneration goals.
Some of the most common permitted development opportunities include:
1. Office to Residential Conversions (Class MA)
Under the General Permitted Development Order (GPDO), developers can convert former commercial or office spaces into residential units, subject to certain conditions and prior approval.
2. Retail and Mixed-Use Conversions
Shops and commercial buildings can often be converted into homes, especially in town centres, high streets, or areas where retail demand has declined.
3. Residential Extensions and Loft Conversions
Homeowners and landlords can extend properties or convert lofts without full planning consent—ideal for increasing rental yields or resale value.
4. Agricultural to Residential (Class Q)
Rural buildings and barns can be converted into homes under certain conditions, making this a popular option for countryside developments.
5. Additional Storeys or New Units
Recent changes to permitted development rules now allow for additional storeys to be added to certain properties and for the demolition of existing buildings to create new homes.
Why Permitted Development Is Popular in 2025
In 2025, the UK property sector continues to face pressures from housing shortages, changing work habits, and the need to revitalise high streets. Permitted development has become a vital tool in tackling these challenges.
Here’s why investors and developers are increasingly turning to PDR projects:
Faster timelines: Avoiding lengthy planning applications allows you to move quickly from acquisition to development.
Lower costs: Saving on planning fees, consultants, and delays boosts your project’s profitability.
Increasing demand for homes: With the demand for affordable, centrally located housing still high, converting underused buildings offers a win-win.
Supportive policy environment: The UK government continues to back permitted development as part of its housing and urban regeneration strategy.
Challenges and Considerations
While permitted development offers a faster route to development, it’s not without its challenges. Projects still require prior approval, which covers factors like:
Natural light for future occupants
Noise impact from surrounding uses
Flood risk
Transport and highways access
Additionally, not all buildings qualify, and local planning authorities can remove permitted development rights in certain areas (known as Article 4 directions), so due diligence is essential.
You’ll also need to ensure the property’s structural suitability for conversion, comply with building regulations, and often deliver a high standard of finish to make the units desirable for sale or rent.
How Finance Supports Permitted Development Projects
Speed and timing are key when it comes to permitted development—and traditional mortgage lenders are often too slow or risk-averse to support these types of projects. That’s where specialist finance steps in.
At FundMyProperty, we provide tailored finance solutions to support permitted development opportunities across residential and mixed-use projects.
1. Permitted Development Bridging Loans
Our bridging finance can be used to:
Secure properties quickly at auction or on the open market
Fund the conversion or refurbishment work
Refinance or exit once the project is complete or sold
Key features:
Funds available in as little as 5–10 days
Up to 75% loan-to-value (LTV) on purchase
Up to 100% of build costs (in stages)
Interest can be rolled up, meaning no payments during the term
This is perfect for investors who need to act fast and fund works before refinancing or selling.
2. Development Finance for Larger PDR Projects
For more complex projects—such as multi-unit conversions or structural alterations—we offer development finance tailored to the scale of your build.
Suitable for ground-up builds, office-to-resi conversions, or multi-phase projects
Loan sizes from £100k to £10m+
Staged drawdowns aligned with your build schedule
Competitive rates with interest rolled up
We work with experienced developers as well as first-timers (with the right team in place), offering advice and flexible terms to help make your project viable.
3. Exit and Refinance Options
Once your permitted development project is complete, FundMyProperty can also assist with:
Refinancing onto a buy-to-let or HMO mortgage
Exit bridging loans to give you more time to sell
Capital release for your next project
Having an exit strategy in place is key to ensuring your project is not only funded—but also profitable.
Real-Life Example: Office to Flats in South London
One of our clients recently acquired a small office building in South London with prior approval for conversion into five one-bedroom flats under Class MA. They needed to move quickly to complete the purchase and begin works before the approval expired.
FundMyProperty arranged a bridging loan of £865,000 within 20 days, covering the purchase and initial works. The developer completed the conversion in under seven months and refinanced onto a commercial mortgage at a significantly higher post-conversion valuation.
With rising demand for affordable housing in the area, the flats were let within a number of weeks, generating a healthy monthly yield—and the client is now looking to work with us on a second scheme nearby.
Why Choose FundMyProperty?
Here’s why developers and investors choose us to support their permitted development projects:
✅ Fast decisions and funding
We understand time is of the essence. Our streamlined processes and lender relationships mean you can act quickly and secure your deal.
✅ Specialist knowledge
We know permitted development inside and out and can advise on the best structure, timeline, and strategy for your project.
✅ Flexible finance packages
Whether you need short-term bridging, staged development funding, or exit loans, we provide custom solutions that fit your needs—not a one-size-fits-all approach.
✅ End-to-end support
From deal analysis to exit planning, we’re with you at every stage of the project.
Final Thoughts
Permitted development offers an exciting opportunity to unlock value in underused buildings and streamline the development process. With the right approach—and the right funding—it’s possible to deliver high-quality homes quickly, efficiently, and profitably.
At FundMyProperty, we help you act with speed and confidence. Whether you're eyeing your first PDR conversion or scaling up your portfolio, we’re here to finance your vision and support your success.
Got a permitted development project in mind?
Contact us today for a free consultation and see how our funding solutions can help bring it to life.
