DCO Explained

A Development Consent Order is the UK’s mechanism for granting planning permission to really big projects the kind classed as Nationally Significant Infrastructure Projects, or NSIPs. Think of power stations, wind farms, major transport links and other large-scale infrastructure. Rather than juggling a host of local permissions, promoters apply for a DCO, which bundles planning consent, land-take powers and other authorisations into a single, legally binding decision.

One of the most compelling features of the DCO route for property investors is its flexibility. Since 2017, new rules allow up to 500 homes to be included as “associated development” in a DCO application provided that housing is functionally related to the main infrastructure project or sits in geographical proximity. According to Savills, this opens a real opportunity for mixed-use schemes, where residential development is wrapped around infrastructure more efficiently than conventional planning routes.

Perhaps even more attractive is the power to compulsory purchase land as part of the DCO itself. The Planning Act permits promoters to acquire land or rights, extinguish existing rights, and temporarily occupy land. That means once consent is granted, there is a far clearer and stronger legal mechanism to assemble fragmented parcels reducing one of real estate’s greatest headaches. This avoids the need for a completely separate compulsory purchase order, simplifying land assembly considerably.

In practical terms, a DCO must set out exactly what is being authorised: the works themselves, their scale, phasing, permitted deviations, and maintenance powers. It also requires a schedule of requirements: these are the binding conditions relating to design, landscaping, mitigation, construction timing and even how decommissioning might work. That front-loaded rigour may sound bureaucratic, but for investors it means clarity and certainty: all the major risks are spelled out from the start.

Of course, there are real risks. For compulsory acquisition to be granted, a “compelling case” in the public interest must be made, and that is judged by the Secretary of State. If the public benefit is not strong enough, or if objections outweigh the perceived advantages, the case may fall apart. Legal challenges are also a live possibility: DCOs can be subject to judicial review, which introduces delay and uncertainty something that can chill investor confidence.

The broader planning environment is also part of the picture. According to CBRE, the average time to grant planning permission in England rose steeply: by 2023, it was 314 days, up 30 percent in three years. That kind of delay matters. The longer projects sit in limbo, the more cost risk mounts. For infrastructure investors and developers alike, that backlog and uncertainty are major obstacles.

On the flip side, recent government reform could change the calculus. Proposals in the March 2025 Planning and Infrastructure Bill aim to make compulsory purchase more efficient, streamlining notice processes and reducing compensation complexity. Savills has highlighted that these changes could speed up land assembly, improve certainty, and unlock value on large-scale, mixed-use sites.

So, why should a property investor care about the DCO route? Because it isn’t just a planning tool it is a powerful lever for creating large, value-inflecting infrastructure projects with a development component. If deployed wisely, it allows you to bundle infrastructure and housing, reduce land-assembly risk, and secure long-term returns. Yet the legal exposure and long lead times mean it remains best suited to those with deep pockets and a willingness to engage with public-sector complexity.

In short, a DCO is not a shortcut for every housing development but for large-scale, infrastructure-driven real estate plays, it offers a uniquely powerful framework.

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