Planning and Permitted Development – where are the opportunities?

The government’s evolving stance on planning and permitted development is quietly reshaping the landscape of commercial real estate. Beneath the noise of housing targets and levelling-up rhetoric lies a profound shift that is redefining how we think about value, use, and opportunity in the built environment. At Campbell Gordon, we see this not as regulatory turbulence but as a moment of strategic clarity. The playing field has changed, and those who understand the new rules stand to gain the most.

For years, permitted development rights were viewed as a narrow planning shortcut — a technical route for small-scale conversions and modest gains. That perception is now out of date. Recent government reforms, including the 2024 expansion of PDRs to allow commercial buildings of any size to be converted to residential without a full planning application, mark a seismic change in how property can evolve. This is deregulation with a purpose: freeing up dormant office, retail and light industrial stock to meet housing needs while breathing new life into urban centres.

Yet, as with any policy simplification, the devil lies in the detail. Local authorities can still restrict these rights through Article 4 directions. Prior approval remains a potential stumbling block, with issues such as flood risk, transport, daylight, and contamination capable of halting projects in their tracks. But this is precisely where expertise counts. Knowing where and how to apply permitted development — and when to combine it with traditional planning routes — can unlock immense value. It’s a question of insight, timing and confidence. Beyond office-to-residential conversions, the planning system is also moving toward a more flexible approach through the introduction of Class H, which enables easier movement between commercial and residential use within mixed-use buildings. This shift recognises that modern towns and cities do not operate in rigid use classes — they thrive on adaptability. A retail unit might need to become a café; a workspace might need to convert to a studio flat; a high street might reinvent itself as a hybrid ecosystem. For developers and investors, this means opportunities to repurpose existing stock without lengthy, costly planning battles. For communities, it offers the chance to see empty buildings brought back to life. Those who embrace flexibility now will lead the next generation of sustainable urban redevelopment.

Critics argue that relaxed planning rules risk poor-quality conversions and inadequate housing conditions. That risk is real — but poor outcomes are not inevitable. They result from poor intent and poor advice. With design-led thinking and responsible development practice, permitted development can deliver homes and mixed-use environments of genuine quality. Our experience shows that when projects are guided by market insight, technical diligence and clear design principles, the results can be exceptional — both commercially and socially. The key is not to exploit the system, but to master it.

The broader truth is that government policy should not be viewed as a constraint on commercial property; it should be seen as an opportunity. Permitted development and mixed-use flexibility allow owners and developers to reposition underperforming assets faster, with fewer barriers and in line with modern market realities. At Campbell Gordon, we’re advising clients to view this policy environment as a strategic lever. Whether that means repositioning an obsolete office, forward-selling a building post-PDR approval, or structuring a mixed-use redevelopment, the principle is the same — policy awareness drives profit. Those who can interpret and anticipate policy — and act decisively within it — will be the ones who set the pace. At Campbell Gordon, that’s exactly what we’re doing: turning government policy into opportunity.