Table of Contents
- This is Money outlines how property buyers can protect themselves
The data suggests that more than 94 per cent of estate agents have been asked to sell properties with illegal renovations or extensions.
Loft conversions, removing load-bearing walls and installing new windows overlooking neighbours’ homes all require planning permission, but are among the most common renovations carried out without it, according to Direct Line Home Insurance.
Real estate agents said they had been asked to sell an average of six homes in the past year without the proper permits.
This is a problem for buyers because, in the worst case, the local council may insist that the house be returned to the way it was before the work was done.
Tricky position: Last year, more than 94% of estate agents were asked to sell properties with renovations or extensions that did not have the appropriate planning permission.
Nearly a third of estate agents surveyed by Censuswide for Direct Line Home Insurance said buyers went ahead with the property anyway, but 31 per cent said buyers insisted sellers obtain retrospective permission or planning consent before proceeding.
In addition, 27 percent abandoned the purchase, causing the chain to collapse.
Around a third of estate agents said selling a home without planning permission will delay the process, with 28 per cent saying it took so long to sort out that the buyer’s mortgage offer expired, meaning between three and six months.
What renovations require planning permission?
Dan Simson, director of Direct Line Home Insurance, said: ‘There is a lot of conflicting advice about which building modifications require planning permission.
‘While it may be tempting to start a job without checking, it’s important to do your research to find out what’s required.
‘While permits can be granted retroactively, for some unlucky property owners, the work may need to be reversed, leaving them out of pocket.’
‘If you are thinking about starting work on your home, it is important to obtain the necessary approvals first.
‘A local authority planning department should be able to provide relevant guidance on what is permitted and bear in mind that you will need to inform your insurer well in advance.’
| Renewal | % of estate agents who have seen it done without planning permission |
|---|---|
| Removal of load-bearing walls | 28 |
| New window overlooking neighboring property. | 25 |
| Loft conversion | 24 |
| Removing the fireplace mantel | 24 |
| Building a porch | 23 |
| Building a new structure | 22 |
| Back and side extensions | 21 |
| Garage conversion | 21 |
| Changes to a listed building or house in a conservation area | 21 |
| Change of use (e.g. house to flats) | 21 |
| Building a garden room | 21 |
| Extensions beyond permitted development | 20 |
| Basement developments | 18 |
| Source: Direct Line Home Insurance | |
Should I buy a house with an “illegal” extension?
If you find a house that has had renovations carried out that look suspicious, the first thing you should do is check whether planning permission was required.
Ideally, any works carried out on the property would fall within the scope of permitted development rights, meaning that planning permission would not be required. Check with your local council to see if this applies before you complete the purchase of the home.
If it turns out that permission was required and you still want to buy the house, make sure you have statutory indemnity insurance in place if you don’t plan to apply for any planning permission.
Permitted or not? If you are interested in buying a house where “illegal” works have been carried out, it is a good idea to submit a retroactive application or insure yourself against the costs.
Indemnity insurance would cover the costs or loss of market value of the property if the local authority ever tried to challenge work carried out without planning permission.
As a prospective buyer, you may want to insist that the seller obtain retrospective planning permission or building regulations approval.
Alternatively, you could negotiate the price of the property down significantly, taking into account the costs and risks you might incur to resolve the situation.
Once acquired, you may need to apply for planning permission, with the risk of being refused.
You may end up being responsible for restoring the property to its previous state, which could be costly and time-consuming. Relevant building regulations must also be complied with.
The process of qualifying a property purchased without planning permission for completed works can be long and stressful, so only you, as a potential buyer, can decide whether the house is worth it.