How much would planning permission add to house value?

[Mooserp]

Not looking for an exact figure!

A house I am quite interested in has planning permission for a single storey extension and conversion of garage to bedroom and ensuite.

I'm not interested in having this work done so it has no value to me. But I wondered how much this may have added to the asking price 🤷‍♀️ it's mentioned as a main feature. The current asking price seems way too high to me, over 50% higher than house in the same street a year ago.

Planning permission shouldn’t really add any value to the house as actually the work hasn’t been done.

also when was it granted? I think work has to start within 3 years of planning being granted and actually there isn’t much outlay for a person to do planning.

And the plans may not be suitable for all people. It might not increase value but might make it easier to sell.

look on the local authority planning applications and see what has been granted - if there have been objections - how many times it was applied for - how difficult it would be to actually do the build etc

Also planning permission is not usually required for a garage conversion if it’s part of the house.

negligible

That depends, it may if there are restrictions in place (ie new build), Conservation area etc. op have a look at value of similar properties without the work .

We've just had to get planning permission for a garage conversion (restriction on the property meant it wasn't within permitted development). That bit of the process didn't cost a lot as far as I can remember - maybe £800 or so for the architect and another £400 for building control/planning application etc?

When we were looking at homes we were told pp could add anywhere between 5 and 10%, but it obviously depends on what is planned. If someone had managed to get pp for dividing their land and having a further home built I suspect that would add a higher % since it can be more difficult to get and if developers have this in mind they have the reassurance they can do it. Pp can take quite a bit of time and money to get through so it also saves future buyers the pain of going through it themselves.

Be mindful of the cost of a builder right now.

There is a house i know locally where she has tried to get more money by doing planning exactly the same as her neighbours. The neighbours house is the ceiling price of the street. However its now at a point where its impossible to do that building work and come in at under the ceiling price of the street if you bought the house at that price. There just isn't the margin in it. I think even a builder will struggle to make a profit tbh.

Its not the most desirable area locally. You can find better and bigger properties for what the ceiling price comes in at.

If you are doing it to get more ££ you may limit the pool of people willing to buy and you may end up having to drop the price anyway. And it will take you longer to sell.

I think people who do this are chancers and are trying to hide something and i dont trust them with a bargepole.

Thanks for all your comments, very useful. I thought the costs would have been much higher.

The pp was granted recently, I looked at the details and couldn't see any objections (wouldn't expect any as it doesn't seem to impact any neighbours).

Interesting. I will speak to EA tomorrow and ask how they came up with the asking price. Although, knowing the current market someone may be about to offer over it already 🥴

Not much - because you should be able to get PP for an appropriate extension on a house which currently has no PP in place. You get turned down if what you want is not in keeping with house, the setting, the area and the local plan.

It is valuable if it is for a big site where they have incurred high architect/surveying/agent/other costs and taken the risk on the land in the first place. But not for a regular extension.

It's like double-glazing or a new kitchen, it may not add actual ££value but it can enhance the desirability of the property making it easier to sell for the vendor.

to someone who has the funds to execute the single storey extension it will make it more likely they'll want to buy as they can move forward with the improvements immediately without having to go through the PP process.

for you, if you don't want the make that enhancement it doesn't have any value, and if you do nothing with it the PP will just "time-out" over time.

As a pp has said, if its a standard extension, nothing. It may make it more attractive to buyers as it has potential, and Council dont have objections to development, but doesn't add value at all.

If it's a large plot / planning is for a 2nd house or the demolishing of a small house to be replaced by something much larger, that would add value, but not what you've described OP.

We were told PP added 5% to ours when we had an estate agent round to view it (in the region of £50,000 - we are in London).

However, our extension was not run of the mill. If it was for the standard attic conversion or kitchen extension on a bog standard Victorian terrace I can’t see it adding as much as that.

The big benefit for buyers, that I can see, is that one could start work right away.