In property investment, timing and strategy often define the difference between strong returns and wasted resources. One of the most common dilemmas investors face is whether to purchase a site and apply for planning approval themselves, or to acquire land or property with planning permission in place. At first glance, the latter option seems to reduce risk, why spend months on uncertain applications when someone else has already navigated the process? Yet, as many investors discover, the reality is more complex.
Buying a site with pre-approved permission is attractive to lenders and offers faster market entry. However, this “shortcut” often hides pitfalls. Developers who secure planning simply to sell, rarely conduct in-depth checks on the structure, ground conditions, or compliance with the next step: building regulations approval. For buyers, this can translate into redesigns, compliance challenges, and delays that erode the very advantage they hoped to gain.
A real-world example is the Silver Birches project in Richmond, where a former care home was redeveloped into nine independent houses. Although planning was granted, substantial revisions were required to meet technical standards and market expectations, adding both time and cost.
This article explores the pros and cons of each approach, weighing flexibility, cost, risk, and market appeal, and offering guidance for investors navigating this critical decision.
The Investor’s Dilemma
Property investors generally face two routes: applying for planning permission themselves or purchasing a site with approval already in place. Each carries distinct advantages, risks, and strategic implications.
Applying for planning is favoured by those who want control. It allows investors and their design teams to shape schemes from the ground up, tailoring layouts, maximising floor area, or embedding sustainable features to strengthen market appeal. This flexibility can increase long-term value, particularly if the strategy anticipates future regulations or aligns with buyer demand. But it requires patience, tolerance for risk and ability to fund the process. The planning system is unpredictable, with refusals, appeals, plus additional consultant costs and holding costs whilst awaiting a potentially delayed returns.
