August 1, 2025

Permitted Development Pitfalls:

Why Getting Permission Can Still Be the Smartest Move

As a BDM working closely with financial brokers and property investors, I see the same familiar scenario: an investor excited to embark on a refurbishment project under Permitted Development Rights (PDRs), where full planning permission isn’t necessary. And technically, they’re right, but that doesn’t mean it’s risk-free.

Despite the intention of PDRs to simplify and accelerate certain types of property development, like converting offices to flats or extending homes, there are critical nuances and regional variations that make seeking prior approval not just advisable – but incredibly important, for both the client and the lender.

Check the Details and Regional Variations

PDRs are nationally granted, but regional councils can still restrict them through Article 4 Directions, which are common in conservation areas or city centres.

And PDRs still come with conditions. For example, converting a C3 dwelling to a C4 HMO may be allowed, but requirements for room sizes, natural light, access, and noise could be reasons why a project becomes unlawful.

Many investors assume that because a local builder, architect or planning consultant says the scheme is “fine,” they’re covered. But legal responsibility always lies with the investor.

What This Means for Finance and Profitability

If an investor makes a false assumption under PDR:

  • The asset may lose its mortgageability, becoming unsuitable for high-street or BTL lenders
  • They may face enforcement action for an unlawful scheme requiring costly remedial work
  • The profitability of the entire project can be wiped out – especially if delays result in exit strategy failure

From a lender’s perspective, the risks are equally real. In a worst-case scenario, the borrower could end up financially underwater – their deposit, build costs, remedial works, and finance extension fees exceed the property’s final value.

So, Should You Still Seek Permission? Absolutely.

In bridging, speed and flexibility matter, but mistakes are costly. Just because something is “permitted”, it doesn’t mean it’s sensible to proceed unchecked.

Getting clarity from the local authority and securing prior approval, even when it feels optional, can not only improve your financial options by derisking the scenario for a lender, but it can make the difference between a profitable exit and a development disaster.

About Glenhawk

Glenhawk provides fast, competitive short-term property finance, helping clients seize opportunities and progress their developments. Offering loans from £250,000 to £50 million, Glenhawk supports both residential and commercial property ventures.

With a leadership team deeply rooted in real estate and finance, Glenhawk understands the challenges clients face. Its straightforward and flexible approach has made it a trusted long-term partner for short-term funding solutions.

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Founded in 2018 by experienced developer Guy Harrington, Glenhawk is led by Managing Director Nick Hilton, who brings extensive expertise in asset management and bridging finance, having overseen more than £1 billion in transactions since 2008. Non-Executive Directors Harry Hill, former Chairman of Rightmove further strengthens the team with their industry insight.

Glenhawk is committed to supporting investors, developers, and business owners, providing the financial solutions needed to move projects forward with confidence.

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Glenhawk works with businesses to provide tailored short-term finance solutions for their clients. By partnering with brokers, advisers, and property professionals, Glenhawk helps secure fast, flexible funding for residential, refurbishment and commercial projects. With a straightforward approach and expert support, businesses can confidently assist their clients in accessing the finance they need to seize opportunities and drive their property portfolios.

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Joining the network provides opportunities for professional brokers to offer a full range of commercial finance solutions by acting as an Appointed Representative (AR) with the full support of the Fiducia Commercial Network team.

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