As Labour sets its sights on delivering 1.5 million new homes, experts say that Permitted Development Rights (PDR) could play a key role—but are still underused.

Development finance firm Rangewell claims that with the right support and reforms, PDR could deliver up to 185,000 additional homes by 2029—and faster than conventional planning routes.

What is PDR?

PDR allows certain types of development to go ahead without full planning permission, typically involving change of use (e.g. office or shop to residential). This saves both time and cost for developers and landlords.

Current Use of PDR

• In 2023/24, just 4% of all new homes in England came via PDR.

  • South East: 8% of new homes via PDR

  • North East: just 1%

• PDR is mainly used for conversions, not new-builds:

  • Only 0.4% of new-build dwellings were PDR

  • But 41% of dwellings from conversions came via PDR

This suggests a missed opportunity for quicker housing delivery—especially in vacant or underused buildings.

Rangewell’s 10-Point Plan to Make PDR Work Harder

1. National 28-day fast-track for Prior Approval – with automatic consent for low-risk schemes

2. Permit modest external changes – like stairwells or balconies to improve layout and habitability

3. Offer business rates holidays for converted empty commercial buildings

4. Tax incentives – Apply VAT relief, capital allowances or SDLT discounts to make marginal schemes viable

5. Allow more homes above shops and larger barn conversions (beyond five units)

6. Support rooftop additions – solar panels, gardens, heat pumps where visually low impact

7. Carefully expand PDR into Article 4/conservation zones where housing vacancy is high

8. Permit partial demolition under Class Q for unsafe barns if footprint is kept

9. Expand Class MA to include more commercial types like clinics, laundrettes or light industry

10. Enable flexible living models – e.g. co-living, live-work spaces, and serviced accommodation

What This Means for Landlords & Agents

• Faster routes to rental-ready stock – ideal for investors or landlords with vacant commercial properties.

• PDR could revitalise struggling high streets or underused buildings, especially in secondary towns.

• Letting agents should be aware of emerging PDR schemes, particularly for sourcing, managing, or marketing new units.

• Finance is flowing – over 50 lenders now actively back PDR developments, making access to capital more competitive than ever.

The Bigger Picture

With housing delivery stagnating (just under 160,000 homes built in both 2023/24 and 2024/25), wider use of PDR could be critical to shifting the dial — and agents and landlords could be part of the solution.