For years, permitted development schemes carried a reputation that deterred many institutional investors.
From substandard unit sizes and cladding issues to poor-quality conversions by opportunistic developers, the legacy of first-generation PD created understandable wariness. But as the sector has matured, so too has the quality and the opportunity.
Early schemes, from around 2013 onwards, were associated with micro-units that didn’t meet space standards, unmortgageable layouts, fire safety risks and fewer design controls such as access to natural light and ventilation. Many were delivered quickly and cheaply by developers exploiting a regulatory gap, cutting costs and workmanship, with little regard for long-term quality or sustainability. But the landscape has shifted dramatically.