Well, the answer is a resounding yes. Planning permission increases a property’s value and is the key to making it sell fast in the market. The precise value it adds relies on various factors, such as:
- Property type; commercial space, house, land, or anything else.
- Property location.
- The type of work the permission covers.
- Whether it adds extra usable floor space.
- The obtained permission type: conversation area consent, listed building, change of use, among others.
- The permission’s approval period – planning is valid for three years, but one can reapply.
How Planning Permission Adds Value
Acquiring a property is an investment like any other, so you should be ready to encounter inherent risks. However, you can incorporate planning permission to eliminate the property’s uncertainty and risk factors. This way, the new owner will be confident that even if the property fails to suit their current demands, they can extend, modify, or even redesign it in the future. What’s more, it opens up the potentials for long-term developments and new uses.
For instance, a small house in a particular region might not fit a family in its existing state. However, if it includes a loft conversion planning permission, it can be much more lucrative because it can offer the desired extra space. Planning permission provides an incredible return on investment to both investors and developers, mainly if it adds extra floor space. Usually, property owners value their properties based on space £/square metre or £/square feet. In this case, getting planning permission to add additional floor areas boosts the property’s value.
Even if the planning permission is awarded for a different scheme or expired, its principle is already established, meaning one can make a revised or new application much more acceptable. Indeed, the local planning policy might have changed and may now refute the failed permission. In general, a sound argument for making a new consent exists, based on the proposal.
How much Value is Added by Planning Permission?
Well, it’s tough to determine the definite value a property gets following planning permission because it relies on several aspects. Remember that the property market heavily depends on demand and location.
Therefore, it is sensible to get assistance from the local realtors and get an appraisal before embarking on your project. All in all, it is worth noting that no property has ever suffered due to having planning permission. Here is a simple guide to the value a property gets from planning permission.
House Conversion to Flats
The possible added value can rise to 30%. Property owners can maximise value by getting planning permission to split their property into separate units. The good thing about flats is that they are popular amongst investors searching for rental income.
Rear or Side Extension
The potential added value is roughly 15%. Extending a property’s ground floor to the side or rear can help you get a crucial floor area and enhance its overall layout. The good thing is that you might undertake this work under the permitted development rules without planning permission.
For instance, a single-storey extension is categorised as a permitted development provided it does not exceed four metres in height, and its width is not more than half of the original house width. Other factors to consider exists, so remember to check them out.
The potential value addition rises to 15%. Nowadays, finding a car parked in a garage is rare. Garages provide an incredible potential to create a brand-new home or increase the living space. You can therefore increase the living space by redesigning a garage you hardly use.
Converting a garage is more cost-effective and less troublesome than an extension, as you can stay in the house as the repair works continue. However, it necessitates careful planning, design, and consultation so that you can fully maximise the space.
You can get an extra bedroom by converting the loft and enjoy a value addition of approximately 15%. The only limitation here is the head height. Nonetheless, the architect will recommend the best solutions. You can get additional space by adding an attic roof to the rear section. Consider going through the permitted development regulations to determine the loft conversions you can undertake without planning permission. However, it would be advisable if an architect oversees these conversions.