Almost all (94%) UK estate agents have been asked to sell properties that didn’t have the required planning permission in the last year resulting in price negotiations, mortgage offers expiring and chains collapsing, research from Direct Line home insurance reveals.
Removal of loadbearing walls, new windows overlooking neighbours and loft conversions were the most common works undertaken without permission.
The research reveals how common it is for vendors to try to sell homes without the required planning consent.
Almost all estate agents (94%) were asked to sell a property that did not have the required planning permission or building regulation approvals for alterations made to the structure in the last year.
On average, estate agents encountered six homes in the last year without the necessary permissions, with 39% being asked to sell between six and 10 homes in this position.
When it comes to selling homes without the relevant consents, it is a mixed picture. Almost a third (32%) of estate agents stated buyers went on to purchase the property regardless and a similar proportion (31%) say that the buyers insisted that the sellers got retrospective permission or building consent before they proceeded.
According to a third (30%) of estate agents, selling without planning permission will slow down the process, with 28% saying it took so long to resolve that the buyer’s mortgage offer expired. Chains were also affected. A quarter (28%) had chains collapse due to other properties not having the correct approvals and 27% had buyers for properties they were selling pull out, causing the chain to collapse.
Table one: Impact estate agents have been faced with due to sellers not having the correct planning permissions or building regulation
|
Action |
Percentage |
|
A buyer bought the property regardless |
32 per cent |
|
A buyer took out legal indemnity insurance |
31 per cent |
|
A buyer insisted on the seller getting retrospective planning permission or building regulation approval |
31 per cent |
|
A sale took longer to complete due to the added complication |
30 per cent |
|
A buyer negotiated the price down |
29 per cent |
|
A buyer’s mortgage offer expired due to the sale taking longer |
28 per cent |
|
I have had a chain collapse due to another property in the chain not having the correct planning permission or building regs approval |
28 per cent |
|
A buyer pulled out causing the chain to collapse |
27 per cent |
|
A prospective buyer decided not to go through with the purchase of the property |
27 per cent |
|
A buyer needed more information before putting an offer into the property |
25 per cent |
Source: Direct Line home insurance: 2024
With many factors impacting whether planning permission is required, it is easy to get caught out. Removal of loadbearing walls (28%), new windows overlooking neighbouring properties (25%) and unapproved loft conversions (24 per cent) were the most common extensions or modifications completed without the necessary consent.
Table two: Most common renovations undertaken without the required planning permissions or building regulation approval
|
Action |
Percentage |
|
Removal of loadbearing walls |
28 per cent |
|
New window overlooking neighbour’s properties |
25 per cent |
|
Unapproved loft conversions |
24 per cent |
|
Removal of chimney breast |
24 per cent |
|
Unapproved porches |
23 per cent |
|
Building a new structure |
22 per cent |
|
Extensions – back and side |
21 per cent |
|
Unapproved garage conversion |
21 per cent |
|
Changes to a listed buildings or changes in a conservation area |
21 per cent |
|
Change of use (e.g.: house turned into flats) |
21 per cent |
|
Illegal garden rooms |
21 per cent |
|
Extensions beyond permitted development |
20 per cent |
|
Basement developments |
18 per cent |
Source: Direct Line home insurance: 2024
CONFLICTING ADVICE
Dan Simson, Head of Direct Line Home Insurance, says: “There is a lot of conflicting advice on what building alterations require planning permissions.
“While it can be tempting to start a job without checking, it’s important to do your research to know what is required. While permissions can be granted in retrospect, for some unlucky owners, the work may need to be reversed leaving householders heavily out of pocket.
“If you are looking to start building work on your home, it’s important to get the required approvals first. A local authority planning department should be able to provide relevant guidance on what is permitted and be mindful that you will need to let your insurer know as well in advance of this.”
