How Much Value Does Planning Approval Add to Your Property?

A9 Architects30 December 2020

A9 Architects argued in December 2020 that planning permission can transform the value of land and open up development options, and that although the process can be slow and uncertain, the gain usually outweighs the trouble. It said sellers often report a higher sale price once permission is secured, and that while a 10% uplift may be optimistic, smaller gains are still worthwhile because permission helps buyers picture a property's future potential.

The firm suggested choosing improvements by researching what local buyers want, talking to estate agents and buyers, and then checking whether permission is needed using the government's Planning Portal, with the local planning authority available for advice before applying.

On the process itself, A9 Architects stressed that planning rules are open to interpretation and vary between areas because decisions involve officers and elected councillors applying national and local policy, so a flexible, pragmatic approach pays off. A decision should take no more than eight weeks, and the firm said councils are under pressure to meet that deadline because their performance is linked to department funding. In its view this leaves officers less willing to negotiate or accept amended plans and more likely to refuse outright. It advised tracking an application closely and, where refusal looms, withdrawing and resubmitting after fixing the problems, as the second application carries no fee.

For landowners, the firm said permission gives buyers flexibility and developers will pay more for it. It claimed farmland owners often underestimate the effect, which it said could reach up to 100 times agricultural value. Land beside residential areas is especially attractive to developers. Permission is not always essential, but a seller without it should expect questions about whether an application was tried and why it failed.

Source: A9 Architects, original article (30 December 2020)

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