Character is a term used in urban development and research to describe aspects of the built environment ranging from aesthetics and design to place identity and sense of place. This wide range of interpretations has led to a vague understanding that differs depending on the perception of users and actors in urban development. In the face of increasing housing demands and incentives to expand, Swedish urban environment has begun expansion that mirrors that of the Million Programme. To avoid a detached environment, character is investigated and proposed to be used as a tool for municipalities in the development. The focus is on answering what ‘character’ is perceived as by municipal officials involved in the urban development process, how character should be used and lastly how character should be approached when developing existing areas. Based on interviews for a practical understanding, literature for a theoretical understanding and contemporary studies for a contextual understanding, character is found to be perceived as the connection between not only existing buildings but also new ones as well as the users themselves. With emphasis on cohesion, originality, traditionality, diversity among other attributes, the character of an area should act as a binding agent for urban development moving forward. Finally, the approach to character is recommended to be cautious based on its vague nature but be treated as exploratory where a base set of two foundational attributes are to invite discussion to bridge the perceptions between actors.