Investing in Paragraph 139 (formerly Paragraph 134) Developments

What is Paragraph 139, and why does it matter?

Paragraph 139 is part of the National Planning Policy Framework (NPPF). That’s the rulebook local councils follow when they’re deciding whether to approve or reject a planning application.

Most of the NPPF concerns managing standard developments, such as housing targets, transport, local character, flood risk, and so on.

Paragraph 139 is different. It says that councils should give special consideration to developments that offer:

• Outstanding or innovative design
• Strong sustainability
• A clear improvement in the quality of local design

In other words, if your building is exceptional — not average, not slightly better than usual, but truly high quality — it might be approved in places where development is normally blocked.

This policy is often used in rural areas, protected land, or edge-of-village sites. In these places, planning permission is hard to get unless your design clearly makes a big, positive difference.

What does the policy actually say?

Here’s the key sentence from Paragraph 139:

“Local planning authorities should give great weight to outstanding or innovative designs which promote high levels of sustainability or help raise the standard of design more generally in an area, so long as they fit in with the overall form and layout of their surroundings.”

In plain English, this means:

• Your project must stand out in terms of sustainability and design
• It has to improve the area, not just blend in
• It still needs to respect the context — don’t force in something that doesn’t fit

This policy used to be known as Paragraph 134. In the December 2023 NPPF update, it was renumbered to Paragraph 139. It’s the same policy, but a new paragraph.

What types of projects qualify for paragraph 139?

This isn’t a free pass for any new build. You’ll need to prove your project is worth the exception. Some real examples that could qualify:

• A rural eco-home built with local materials, solar panels, and low-impact foundations
• A house that replaces a derelict building but keeps the original shape while upgrading the design and environmental performance
• A cluster of small homes with an innovative layout that improves the visual character of the area
• A net-zero design that uses renewable energy, heat recovery, rainwater harvesting, and passive solar orientation

To be clear, the council won’t approve a shiny glass box just because it looks different. The design must be thoughtful, well-integrated and backed up by solid sustainability features.

What are the real benefits for investors?

This route isn’t for everyone. But for the right investor, the benefits are big:

Less competition: Most developers avoid Paragraph 139 sites because they’re harder to plan and design. That means you could buy land others wouldn’t touch, often at a lower cost.

Higher property value: These homes tend to be more attractive to buyers who want something better — not just in terms of looks but also energy performance and build quality.

Access to sensitive sites: With the right design, you could get planning permission in areas where standard houses would never be approved. This opens up new development opportunities.

Longer-term value: Paragraph 139 projects often hold their value better because they’re unique, desirable, and built to higher standards.

What are the risks?

This isn’t a guaranteed win. There are clear risks to be aware of.

Planning permission is harder to get: The design has to be exceptional, not just good. You’ll need a complete planning application, expert reports, and detailed drawings. A vague or low-cost submission will likely get rejected.

Higher design and build costs: Expect to spend more on architects, consultants, and materials. These homes often need a bespoke construction approach.

Longer timescales: Paragraph 139 applications usually take longer to prepare, submit, and get approved. The build can also take longer if you use unusual materials or techniques.

Uncertain resale: These homes don’t appeal to everyone. You’ll need to understand the local market and be realistic about who your buyer or tenant will be.

How to navigate the planning process under NPPF 139

Paragraph 139 applications are not standard. You’ll need a solid team and a smart approach.

Find the right site

Look for rural or edge-of-settlement plots close to services but outside normal development boundaries. Avoid heavily protected land (like Sites of Special Scientific Interest).

Get pre-application advice

Most councils offer this service. It lets you test your idea with planning officers before finalizing drawings and reports.

Build your team

You’ll need:

• An architect with experience in Paragraph 139 or similar policy-led applications
• A planning consultant to write the design and access statement, liaise with the council, and manage objections
• A solicitor who understands conditional land purchases (if planning approval is needed before you complete the sale)

You should also expect to prepare a full planning application, including:

• Detailed architectural drawings
• A planning statement explaining how the design meets Paragraph 139 criteria
• Sustainability reports (energy, water, materials)
• Ecological surveys, if relevant

Involve the community

Speak to locals early if your site is near homes or visible from public paths. Objections can derail a strong application, especially in rural areas.

Funding and financial questions

These developments don’t always suit standard mortgage products, especially at the early stages.

Funding options include:

• Development finance: Based on the gross development value (GDV) of the finished home
• Private investors or joint ventures: You bring the site, they bring the capital
• Specialist green lenders: Some funders now focus on low-energy or eco-builds

Budget for:

• Design fees (these can be higher than usual due to the level of detail required)
• Planning and consultant fees
• Contingency on build cost — these homes are often non-standard

Don’t forget tax

Speak to a tax adviser about:

• • VAT (which may be zero-rated on new dwellings)
  • Capital gains when selling

• Stamp duty options if buying land rather than a house

Want more on this? Read our full guide on how to finance your residential property development project.

Final thoughts and next steps

Paragraph 139 is one of the few ways you can access land that’s usually off-limits and use it to create something that’s genuinely different. But success depends on doing it properly.

You’ll need the right design, location, team, and a clear understanding of what the policy allows.

If you’re serious about building high-quality, sustainable homes that stand out — we can help.

Book a discovery call with WindsorPatania and let’s talk about what’s possible.

Disclaimer: This guide is for general information only and does not constitute financial, planning, or legal advice. Always consult a qualified professional before making investment decisions.