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Developer Return on GDV Benchmark

NPPF Dec-2025 PPG-Viability cites 17.5 percent profit-on-GDV as the working benchmark for unobjectionable schemes. Lenders typically reference 20 percent profit-on-cost. The two diverge: on a 1.0m cost / 1.2m GDV deal PoC is 20 percent and PoGDV is 16.7 percent. Use both in negotiation.

Why the two benchmarks differ

Planning authorities focus on whether the scheme delivers a developer return at all (PoGDV is robust to small cost changes). Lenders focus on cost recovery (PoC measures the cushion above their loan).

When 25 percent is reasonable

  • Heritage or unknown-structure conversion: schemes carry tail risk.
  • Speculative GDV (Bakerloo, HS2, regen uplift): underwrite without the uplift.
  • Long-hold BTR delivery into uncertain yield environment.

When 15 percent is acceptable

  • Affordable housing schemes where social-rent revenue caps GDV.
  • BTR with a forward-funded exit and committed yield.
  • Self-build personal projects (no equity-investor return required).
Planning Practice Guidance: Viability· Dec 2025Appraisal model reviewed by Oliver Wakefield-Smith (data integrity) with chartered-surveyor (MRICS) and CTA tax review. No affiliate links.