The Autumn Statement from the UK government, delivered by Chancellor Jeremy Hunt, has introduced a significant new proposal for property investors and homeowners alike: the potential to transform any house into two separate flats.
Transforming Houses into Flats: A New Direction in Housing
The government is set to consult on a new law that would allow the conversion of any house into two flats, provided the building’s exterior remains unchanged. This initiative represents a significant shift in housing policy, aiming to increase the availability of residential units without altering the external character of neighbourhoods.
Consultation and Implementation Timeline
The consultation on this new Permitted Development Right is scheduled to begin early in the new year, with full implementation expected in 2024. This timeline gives potential investors and property owners ample time to understand the implications and prepare for any changes.
Streamlining Planning Applications
Another crucial aspect of Chancellor Hunt’s announcement concerns the efficiency of planning applications. Starting next year, local councils will have the ability to recover the full costs of planning applications, contingent on meeting deadlines. This change is expected to expedite the process for infrastructure projects, reducing delays and bureaucratic hurdles.
Industry Reactions to Planning Reforms
Trevor Abrahmsohn, from Glentree International, acknowledges that speeding up planning applications is a positive move. However, he emphasizes the need for a more comprehensive overhaul of the system, pointing out that current bottlenecks in planning permissions are a major barrier to increasing the UK’s housing supply.
On the other hand, Alistair Watson, a planning and environment expert at Taylor Wessing, expresses skepticism. He views these reforms as minimal, failing to address the larger needs of the real estate sector and the country’s broader demand for comprehensive planning reform.
Funding and Development Initiatives
The Chancellor also announced a significant investment in the housing sector. A £450 million housing fund is earmarked to facilitate the construction of 2,400 new homes. This investment underscores the government’s commitment to addressing the housing shortage.
New Investment Zones
A pivotal part of the government’s strategy is the establishment of new ‘investment zones.’ These zones, located in West Midlands, East Midlands, and Greater Manchester, with additional plans for Wrexham and Flincher, are designed to stimulate economic growth and development in these regions. These zones could present unique opportunities for property investment and development.
Conclusion: A Mixed Outlook for UK Property Investment
While these reforms offer new possibilities for property conversion and development, experts argue that they fall short of the comprehensive changes needed to significantly impact the UK’s housing market. For potential investors and homeowners, these developments signal new opportunities.