Does Selling a House With Planning Permission Add Value?

Selling a house is usually a significant milestone. It’s only natural that you want to maximise your property’s value when you sell.

One potential road to increased property value is getting planning permission before putting it on the market. But does selling a house with planning permission add value? The short answer is often yes — but the extent depends on several factors. 

In this blog we’ll unpack why planning permission matters, and how it could boost your property’s price.

What’s the impact of planning permission on property value?

Planning permission can transform how potential buyers view your home. It offers a unique selling point: the promise of future potential. 

An extension, a loft conversion, even planning permission for an entirely new build — whatever the type of permission, buyers are often willing to pay a premium for a property that comes with that all-important local planners’ green light already in place. 

Why? Because it saves them time, effort and the uncertainty of dealing with local councils and planning regulations themselves.

For many buyers (especially those seeking a long-term home or investment opportunity), the ability to improve or expand the property is highly attractive. In fact, research suggests that planning permission can increase a property’s value by as much as 10%, depending on the scope of the permission granted and the area’s demand.

What types of planning permission add the most value?

Not all planning permissions are created equal. The added value will depend on the type of work approved. Here are a few examples of planning permissions that often appeal to buyers:

Extensions

Permission for a rear or side extension is one of the most common ways to add value. Extra space for a larger kitchen, dining area or additional bedrooms is often top of the wishlist for families.

Loft conversions

Transforming unused attic space into a functional room can significantly boost a home’s value. Planning permission for dormer windows or raising the roofline adds extra usability and appeal.

Garden developments

Permission for features like a garden room, home office or even a new-build property on surplus land can all draw in buyers looking for flexibility or investment opportunities.

Garage conversions

With more people working from home, converting a garage into a home office or living space is a popular improvement. Pre-approved planning permission for such a conversion saves buyers a major headache.

Of course, each of these options can vary in value depending on the property’s location, condition and the local market. For instance, in a commuter town, permission for a home office conversion may be more valuable than in a rural setting, where buyers might prioritise larger living areas or annexes.

How much does planning permission cost?

Securing planning permission isn’t free, but it can be a worthwhile investment. 

The cost depends on the complexity of the project and where your property is located. In England, the fee for a householder application is £206, but you’ll likely also need to factor in costs for professional services such as architectural drawings, planning consultants or surveyors. On average, obtaining planning permission can range from £1,000 to £3,000.

There’s no doubt it’s a considerable expense, but it’s worth considering the potential return. If spending £2,000 could increase your property’s value by £20,000, the investment pays for itself many times over. However, you’ll need to weigh the costs against the expected uplift in value, especially if your property is already in a sought-after location or the local market is less competitive.

Does planning permission guarantee a higher sale price?

Real talk time: Planning permission is not a guaranteed ticket to a higher sale price.

That said, it does very often add value. Factors such as location, market conditions and the nature of the planning approval will all influence exactly how much buyers are willing to pay. 

Location matters, because in areas where space is highly sought after, planning permission for an extension or additional building could significantly boost value. Conversely, in areas with less demand, the increase may be more modest.

Also, if the housing market is particularly buoyant, planning permission could be the cherry on top for buyers already keen to purchase. During a slower market, however, the added value might not be as pronounced.

Bear in mind that buyers are more likely to pay a premium for well-executed plans that align with modern tastes. Generic or overly ambitious planning applications may not have the same impact.

Last of all, the type of buyer also plays a role. Developers or investors might be particularly drawn to properties with planning permission, as it reduces the risk and time involved in turning a profit. Families or individual buyers, on the other hand, may prioritise the current liveability of a property over its future potential.

Declaring planning permission to buyers

If you’ve secured planning permission, make sure you include all the relevant details in your property’s marketing materials. 

Buyers need clear, concise information about what’s been approved, along with any conditions attached to the permission. So, if you’ve gone the extra mile to obtain planning permission, don’t let that effort go unnoticed.

At the same time, do your best to manage expectations and handle any worries. Declaring planning permission when selling a house doesn’t mean every buyer will see it as added value. Some may even view it as a potential hassle, so be prepared to answer questions and reassure buyers about the process.

Make sure you weigh up the planning pros and cons

If you’re considering selling and wondering whether to secure planning permission first, it’s worth weighing the pros and cons.

On the plus side, it can add a unique selling point to your property. What’s more, it can save buyers time and hassle, increasing your home’s appeal. Even better, it can potentially increase your property’s market value by up to 10%.

But on the downside, you’ve got to face the upfront costs for applications, surveys and drawings. It can be time-consuming, with approval taking up to eight weeks (or longer for complex projects). And ultimately the value it adds will depend on the type of permission and market conditions.

In some cases, simply highlighting the potential for planning permission may be enough to attract buyers. For example, if your property has a large garden, you could point out its suitability for development without formally applying. However, this isn’t as appealing as planning permission already having been granted, as buyers prefer certainty.

Is planning permission always worth it?

Planning permission can attract higher offers, it doesn’t guarantee them. Market conditions, buyer preferences, and the specifics of the permission itself all play a role. For example, planning approval for a modest kitchen extension might not have the same impact as permission for a large-scale redevelopment. And in a buyer’s market, even approved plans may struggle to shine.

Not every homeowner is in a position to secure planning permission before selling. For instance, if you’re relocating or need to settle financial matters quickly, waiting for planning approval might not be an option. And there’s no denying that hiring professionals and paying application fees can add up, with no guarantee that the plans will be approved. Further, the process requires patience and perseverance. That’s not something every seller has the bandwidth for.

For those who’d rather sidestep these hurdles, cash house buyers provide a solution. Selling directly to a buyer who values your property as it is saves time, eliminates costs and removes the guesswork.

Final thoughts: Is planning permission right for you?

Selling a house with planning permission can often add value, but it’s not the only way to achieve a successful sale.

For homeowners who want to avoid delays, save money or eliminate the stress of securing approvals, selling to a cash house buyer is a straightforward and appealing option.

SellHouseFast.co.uk is an established cash house buyer with a unique hassle-free, quick and straightforward process. 

Why not explore your options — get in touch today for a no-obligation cash offer on your property.