Planning Feasibility Study: Is Your Development Opportunity Actually Viable?

Planning Feasibility Study

A site can look perfect for development and still present significant planning challenges.

A large plot, an attractive purchase price or a property described as having “development potential” does not necessarily mean that the project will deliver the return an investor expects.

This is why a planning feasibility study can be valuable before a developer commits substantial money to a site.

Rather than simply asking whether planning permission is possible, a feasibility assessment should help answer a more commercially important question:

Is this development opportunity actually worth pursuing?

 

A Planning Feasibility Study Is About More Than Planning Permission

 

Planning permission is only one part of a successful development project.

A proposal might technically be capable of being submitted for planning permission but still be unsuitable because of its scale, site constraints, access requirements or development costs.

A feasibility assessment can help identify the difference between:

  • Land that looks suitable for development
  • Land with theoretical development potential
  • Land where a realistic planning strategy may be achievable
  • Land where the proposed development may not be commercially worthwhile

This distinction is particularly important when evaluating development opportunities before purchase.

 

Start With the End Development in Mind

A useful feasibility assessment begins with what the developer wants to achieve.

For example, the objective might be to:

  • Build several new homes
  • Convert an existing property into flats
  • Replace an existing building
  • Extend and intensify an existing use
  • Develop a commercial property
  • Create a mixed-use scheme
  • Change the use of an existing building
  • Maximise the number of residential units

The question is then whether the site can realistically support that objective.

If the original concept is unsuitable, an early assessment may reveal alternative development options before substantial investment is made.

 

What Can Make a Promising Site Difficult to Develop?

A site’s appearance tells only part of the story.

Several issues can affect development potential.

Planning Policy

The site’s location, designation and relevant planning policies can determine what types of development are acceptable in principle.

Policies relating to housing, design, density, Green Belt, heritage, transport and the environment may all influence the proposal.

Planning History

Previous applications can provide valuable insight into how the local planning authority has approached the site.

Refusals can be particularly useful because the reasons for refusal may highlight issues that a new proposal needs to address.

Access and Highways

A site may have sufficient land for the proposed buildings but still face problems relating to access, parking, traffic or highway safety.

For residential development, the proposed number of units may also affect access requirements.

Neighbouring Properties

The relationship between a development and surrounding properties can influence the appropriate scale and layout.

Potential issues can include overlooking, privacy, daylight, sunlight, outlook and residential amenity.

Environmental and Physical Constraints

Flood risk, trees, ecology, landscape, heritage assets and other physical characteristics can affect the design and viability of a development.

Identifying these constraints early allows the developer to consider whether they can realistically be managed.

Testing the Development Capacity of the Site

One of the most commercially useful parts of a feasibility study is assessing what the site could potentially accommodate.

A developer may initially assume that a site can support ten homes, for example, but planning constraints could make a smaller scheme more realistic.

The assessment may therefore consider:

  • Site size and shape
  • Existing buildings
  • Surrounding development
  • Density
  • Access
  • Parking
  • Building heights
  • Layout
  • Amenity space
  • Relationship with neighbouring properties

The objective is not to promise a particular number of units, but to establish a realistic development direction.

 

The Cheapest Time to Discover a Planning Problem Is Before You Buy

 

For property investors, timing is critical.

Discovering a planning constraint after purchasing a site can leave the developer with limited options and significant expenditure already committed.

A planning feasibility assessment undertaken before acquisition can help identify potential concerns at a much earlier stage.

It may help an investor decide whether to:

  • Proceed with the purchase
  • Renegotiate terms
  • Investigate an alternative scheme
  • Seek further planning advice
  • Request pre-application advice
  • Walk away from the opportunity

In some circumstances, discovering that a site is unsuitable can be just as valuable as discovering that it has strong development potential.

 

Don’t Design the Scheme Before Understanding the Site

 

Developers can sometimes commission detailed architectural drawings too early.

If the fundamental planning constraints have not been assessed, expensive design work may later need to be changed.

A more strategic process is:

  1. Identify the development objective
  2. Assess the site’s planning position
  3. Identify opportunities and constraints
  4. Consider realistic development options
  5. Establish an appropriate planning strategy
  6. Develop the design around the planning parameters
  7. Progress towards pre-application advice or a formal application

This approach can help align the design with the planning realities of the site.

 

What a Good Planning Feasibility Study Should Reveal

 

A useful feasibility study should give the developer a clearer understanding of the opportunity.

It should help identify:

  • The site’s main planning opportunities
  • Key planning constraints
  • Relevant planning policies
  • Previous planning decisions
  • Potential development options
  • Likely areas of planning risk
  • Additional information or surveys that may be required
  • Whether the proposed scheme should be modified
  • The potential next steps

The purpose is not to create false certainty. It is to reduce uncertainty before the project reaches a more expensive stage.

 

When the Best Development Strategy Is to Change the Original Idea

 

A feasibility assessment does not always confirm the developer’s initial plans.

Sometimes the most valuable finding is that a different development approach may be more appropriate.

For example, a site initially considered for multiple new homes may have greater prospects for a smaller scheme, conversion, extension or alternative use.

Flexibility at this stage can make a significant difference.

Instead of trying to force an unsuitable proposal through the planning system, developers can use the feasibility process to identify an approach that better responds to the site’s circumstances.

 

From Feasibility to Planning Strategy

 

Once the feasibility assessment is complete, the next stage is to determine how the development should progress.

This could involve:

  • Further site investigations
  • Specialist surveys
  • Architectural design
  • Pre-application discussions
  • Planning application preparation
  • Supporting planning statements
  • Engagement with relevant professionals
  • Review of alternative development options

The feasibility study therefore becomes the starting point for a wider planning strategy rather than an isolated report.

 

Speak to Charrette Law About Your Development Opportunity

Before committing to a development site, it is important to understand not only whether development may be possible, but whether the proposed scheme is realistic for the site.

Charrette Law can assist property owners, developers and investors in assessing planning opportunities, identifying potential constraints and developing an informed strategy for proposed development.

A planning feasibility study can give you the information needed to make a more confident decision about whether to proceed, adapt the proposal or reconsider the opportunity.

Frequently Asked Questions

What is the purpose of a planning feasibility study?

Its purpose is to assess whether a proposed development is realistically achievable from a planning perspective and identify opportunities, constraints and potential risks before significant investment is made.

Should I get a feasibility study before buying land?

For development sites, obtaining early planning advice can help identify issues that could affect the value or development potential of the land before you commit to the purchase.

Can a feasibility study guarantee planning permission?

No. A feasibility study cannot guarantee an approval. It provides an assessment of the planning position and potential risks based on the information available.

Can a planning feasibility study identify how many homes I could build?

It can assess the factors that may influence development capacity, but the eventual number of homes will depend on the site’s planning circumstances, design and the assessment of the relevant planning authority.

What if my proposed development is not feasible?

The proposal can potentially be adapted. A feasibility study may identify alternative layouts, scales, uses or development strategies that could provide a more realistic route forward.

Is a planning feasibility study only for large developments?

No. It can be useful for a range of projects, from individual residential developments and conversions to larger housing, commercial and mixed-use schemes.

 

Speak with our expert team today and take the next step toward approval and completion.