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12:00 AM 26th April 2024
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Planning Permission Boosts House Price By Up To 20%

 
Photo by Sergey Zolkin on Unsplash
Photo by Sergey Zolkin on Unsplash
New research from up-front information platform, Home Sale Pack, reveals that homes in England that come to the market with planning permission already granted command an average price premium of 11%, climbing to almost 20% in the North West.

The company has analysed current property listings data to learn how many homes currently listed on England’s market already have some form of planning permission in place, and how much of a price premium they command compared to wider average house prices.

Homebuyers are often looking to the long-term future when deciding how suitable a property is for their needs, often considering whether they will be able to adapt or extend the property as their requirements evolve over time. Gaining planning permission is a large part of the challenge when looking to extend a property, so a home that comes with permission already granted can be a real bonus. But how much more will buyers pay for a property that is ready to be extended?

The analysis reveals that the average asking price for a property with pre-agreed planning permission is £475,191.

This is a premium of 11% compared to comparable properties currently listed for sale without the added bonus of planning permission already in place. This premium is equivalent to an additional monetary value of £47,107.

Analysing the data on a regional level reveals that in some parts of England, the planning permission premium can be much higher, nowhere more so than in the North West.

The average price for a home with planning permission in the North West is £393,583, 19.9% (£65,366) higher than the wider average house price of £328,217.

Pre-agreed planning permission also brings a price premium of 18.7% in London, 17.2% in Yorkshire & Humber, and 17.1% in the North East.

The regions where existing planning permission carries the smallest price premium are the East Midlands (4.5%), West Midlands (8.2%), and South West (9%).

Which region has the biggest supply of homes with existing planning permission?

While a property with pre-agreed planning permission may command a healthy premium, the analysis by the company shows that they may be hard to find for prospective buyers.

The figures show that there are just 10,359 homes with planning permission currently available in the current market, the largest proportion are found in the South East, home to 27.6% of the national total.

The East of England has 19.9% of the total, followed by the South West (18.6%), East Midlands (14.2%), and North West (5.9%).

The fewest homes are currently available in the North East (1.4%), London (2.9%), and Yorkshire & Humber (4.5%).

Ruth Beeton, Co-Founder of Home Sale Pack, says:
“If you’re selling a home with existing planning permission in place, you’re going to find yourself in a strong position. Prospective buyers with an appetite to expand a property over time will often lean towards a property with pre-agreed planning permission in place as it allows them to sidestep a time consuming and costly process.

"Even if the permission that’s been granted doesn’t match a buyers vision for their new home, it’s still a really good sign that any future planning requests will be granted because the local authorities have already shown a willingness to allow the home to be improved.

"This is another example of how sellers can benefit from providing buyers with up-front information about a property because not only does it improve the speed and certainty of their sale, but it can also make their property more appealing and help them to command a higher price.

"As such, you could be missing out on quality buyers because they’re not able to see the true value of what you’re selling.”


Full data tables and sources can be viewed online, here.