Plot Ratio, commonly referred to as Floor Area Ratio (FAR), is a key metric in property development finance UK used to determine the total permissible floor space on a plot of land relative to its area. Calculated as total building floor area divided by the plot size, FAR informs unit density, planning permissions, and design efficiency. It is essential for assessing project scale, estimating construction costs, and evaluating potential returns on investment. Developers use FAR to optimise layouts, balance regulatory compliance, and maximise financial performance across residential, commercial, or mixed-use property schemes in the UK.
This sits beneath Unit Density/Plot Ratios, introducing a more specific variant of the measure without changing its core interpretation. It is commonly considered alongside Density Ratio (Units per Acre or Hectare), as both are closely related measures used to assess similar aspects of performance or risk.
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