Research by Barrows and Forrester has uncovered how much more a home could make in the current market when selling with the additional benefit of pre-granted planning permission.
The Birmingham-based agent analysed data on property prices across 20 major cities, looking at the premium attached to homes with planning permission already granted versus those without, and how it reflected on property prices.
The house price premium associated with planning permission properties ranges from 1% to 52% but on average, homebuyers can expect it to boost property price expectations by 21% or £46,000.
The biggest boost is in Bradford, where a home with planning permission sells for 52% more than those without – an increase of £81,789.
Selling with pre-granted planning permission in both Birmingham and Bournemouth can also boost the value of your property by 51%. Both areas are also home to the highest premium in a monetary sense at £106,674 and £159,049 respectively.
Liverpool (47%), Newcastle (36%), Sunderland (36%), Southampton (24%), Sheffield (32%), Leicester (21%) and Leeds (17%) also make the top 10 cities where planning permission can help boost house prices.
However, the ability for a quicker build doesn’t have the same impact across the board. In both Plymouth and Nottingham, pre-granted planning permission only brings a 1% premium when looking to sell, while in Swansea it’s just 2%.
James Forrester, managing director of Barrows and Forrester, explains: “One defining trend of the pandemic has been our push to buy bigger homes and this has been a driving factor behind such steep levels of house price growth.”
“Of course, not everyone has been able to stretch their budget and so upsizing their existing home has been the next best thing. However, simply gaining planning permission for your property can also be beneficial when looking to sell, even if you haven’t actually had the work done.”
Forrester says it signals to a buyer that there is greater potential than the existing bricks and mortar and that an extension to the property can be legally achieved.
“Not only this, but it gives them a head start and allows them to avoid the often protracted process of gaining planning permission in the first place,” he concludes.