permitted development - Gerald Eve

North. South. East. •. Permitted development took a while to get going with average volumes of £27m per ..... Milton Keynes MK9 1AU. Tel. +44 (0)1908 685950.
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EXPERTS IN

PERMITTED DEVELOPMENT

International Property Consultants

Experts in Permitted Development

Permitted development – Overview The Permitted Development Legislation introduced in 2013 has been one of the most important changes in planning policy in recent years. It has had a considerable knock on effect on stock levels in town centre office markets. During the last two years, one out of every ten new homes in the UK has been delivered through the exploitation of Permitted Development Rights (PDR). This trend is not uniform either. In Stevenage, Three Rivers, Sutton, Nottingham, Basildon, Hounslow and Harlow the number of new homes provided via PDR is well in excess of 50% of the housing stock being delivered. Ageing secondary offices used to be characterised by increased letting and void risk and significant future capital expenditure liabilities. PDR currently enables vendors to exit these investments at a significant premium to traditional vacant possession values. However, this may be a finite opportunity with the widespread adoption of article 4 directions in many south eastern centres. In addition, The Local Government Association, which represents 370 councils in England and Wales, has recently called for development rights to be scrapped as they fail to account for minimum space standards and affordable housing provision. If widely adopted, both of these points could have a significant impact on vacant possession values. There are many things for landlords to consider when appraising existing office properties and whether a PDR approval could provide the most profitable asset management strategy for a property. This is where Gerald Eve and its specialist teams can help.

Timeline MAY 2013

OCTOBER 2015

OCTOBER 2017

NEXT?

PDR introduced as a temporary measure to allow the conversion of offices to residential without the need for planning consent

After government consultation temporary PDR are made permanent.

PDR broadened to allow the conversion of small light industrial units (not exceeding 500 sq m)

It has been suggested that future PDR changes could allow the conversion of high street retail and may also allow demolition of offices and reconstruction of a new build residential

www.geraldeve.com

Experts in Permitted Development

What we do

Suitable PDR assets are often but not always older buildings which have reached a crossroads in their life cycle. Maintaining office use and creating a product that would appeal to tenants would require significant capital expenditure which is not always commercially viable in terms of achievable rents. Such assets can often create a drag on portfolio performance if maintained for office use. We have experts on PDR in planning, development, lease exit, valuation and investment with the skills to identify, unlock and significantly enhance value from these assets. Our services are tailored to suit your organisation’s changing requirements. Together we make the right choices to enhance value and mitigate risk.

Asset Identification

A thorough understanding of local markets and the drivers of value in the PD market allow us to select appropriate stock and identify opportunities.

Transaction

Lease Exit

Development

Planning

An experienced team who have transacted over £280m of PD related assets in the last 18 months. We know all the key players.

An experiencesd team to assist in costing sucessful delivery of your PD scheme.

Highly experienced team specialising in securing vacant posession quickly and effciently.

In-depth knowledge of Permitted Development Rights and conventional planning legislation enabes us to secure the most favourable scheme.

Valuation

Dedicated residential valuation team to determine the best unit mix