Development

Planning Gain

Calculate the uplift in land value created by obtaining planning consent.

Intermediate

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.

Common mistakes:
  • 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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Sensitivity Analysis

Sensitivity

Adjust the variables below to stress-test this scenario. Results update instantly.

£2,400,000
£0£4,800,000
55%
1100

Export

Live Results

Gross Uplift

£1,830,000

Net Uplift to Landowner

£1,320,000

Risk-Adjusted Uplift

£645,000

Value Multiple

8.32x

Promoter Share£330,000
Consented Value after S106£2,080,000
Expected Value Today£738,352
Loss if Refused£180,000