The town of Predeal is the highest altitude urban settlement in the Romanian Carpathians (975–1060 m) and is a famous regional skiing resort. Recent urban extension of the settlement on to areas previously covered by landslides represents a key issue and potential hazard for future urban development. In order to provide data for the urban planning process, a landslide susceptibility assessment was performed. The ‘Romanian methodology for landslide susceptibility assessment’, an expert‐based method, was integrated with other digital data available. Landslide susceptibility classes were defined on a probabilistic scale adapted according to the threshold for triggering landslides. Urban development issues were approached as an association between the landslide susceptibility map (to be utilised by local authorities) and recent changes to the built environment. Housing has been extended onto areas previously affected by landslides due to a real‐estate boom. An urban development scenario, focused on potential forest stand clearance, within a representative urban district was used to demonstrate the consequences of landslides to local authorities.