Planning Gain
Calculate the uplift in land value created by obtaining planning consent.
Introduction
Who this is for: Land promoters, option holders and developers pursuing consent.
Why it matters: Planning gain is the largest single value uplift in property, and the most uncertain. The return has to be weighed against the real probability of refusal and the cost of pursuing it.
Typical scenario: An agricultural field worth £250,000 with prospects of consent for 25 dwellings.
- Valuing the uplift without discounting for the probability of refusal.
- Forgetting promotion or option fees, which typically take 15-25% of uplift.
- Ignoring that S106 and CIL are deducted from the consented value, not added to costs separately.
Inputs
Current & Consented Value
Costs & Risk
years
Analysis
Consent lifts the land from £250,000 to £2,080,000 after S106 — a 8.3x multiple. After £180,000 of promotion costs and the promoter's share, the landowner nets £1,320,000. At 55% probability, the risk-adjusted uplift is £645,000.
This analysis provides context, not financial advice. Consult a qualified adviser before making investment decisions.
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Live Results
Gross Uplift
£1,830,000
Net Uplift to Landowner
£1,320,000
Risk-Adjusted Uplift
£645,000
Value Multiple
8.32x