One of the clearest pathways to fetching a higher sale price for your property is already having planning permission in place. Recent research conducted by Home Sale Pack reveals that homes on the market with pre-approved planning permissions can command significant price premiums, with differences noted across various regions in England.
Home Sale Pack’s analysis involved scrutinising property listings across England to determine how many currently listed homes have some form of planning permission and the impact this has on their asking price. The findings are eye-opening: properties with planning permission boast an average price premium of 11%, which translates to an additional £47,107 over their counterparts without such permissions.
Regional Variations
The impact of planning permission on property prices varies considerably by region. The North West of England sees the most substantial uplift, with homes equipped with planning permission priced nearly 20% higher than the regional average. This difference puts the average price of such homes at £393,583 compared to £328,217 without permission.
London and other regions also show significant premiums:
- London: Properties with planning permission are 18.7% more expensive.
- Yorkshire & Humber: Homes fetch a 17.2% premium.
- North East: There is a 17.1% increase in property prices with permission.
On the other hand, the smallest increases are observed in:
- East Midlands: A modest 4.5% premium.
- West Midlands: An 8.2% increase.
- South West: Properties see a 9% uplift.
Benefits of Selling Homes With Planning Permission
Ruth Beeton, co-founder of Home Sale Pack, emphasises the strong market position of sellers who offer homes with existing planning permissions, “If you’re selling a home with existing planning permission in place, you’re going to find yourself in a strong position. Prospective buyers with an appetite to expand a property over time will often lean towards a property with pre-agreed planning permission in place as it allows them to sidestep a time-consuming and costly process. Even if the permission that’s been granted doesn’t match a buyer’s vision for their new home, it’s still a really good sign that any future planning requests will be granted because the local authorities have already shown a willingness to allow the home to be improved.”
Strategic Selling
The research suggests that sellers can significantly benefit from being upfront about the specifics of their property. Detailed information about existing planning permissions not only speeds up the selling process but also boosts the property’s attractiveness, potentially commanding a higher selling price.