Planning permission boosts house price by up to 20%
Research from Home Sale Pack has found that homes in England that go to market with planning permission already granted can command as much as an 11% higher price, and nearly 20% higher in the North-West.
Homebuyers often plan far into the future when choosing how suitable a potential property is for their life. One consideration is if they will be able to adapt or extend it as their requirements change over time. Gaining planning permission is a big part of the equation when looking into extending a property. Hence a home that goes on sale with it granted can be an added bonus.
Home Sale Pack’s analysis found that the average asking price a property that already had pre-agreed planning permission is £475,191. This is 11% more compared with properties listed without it
Analysing the data on a regional level also showed some interesting trends. The premium can be much higher in some parts of England, especially in the North-West. The average cost of a property with planning permission in the North-West is £393,583, 19.9% or £65,366 higher than the average house price of £328,217. The North-East on the other hand has a 17.1% increase.
In London, it offers a premium of 18.7%, while Yorkshire and Humber is seeing an increase of 17.2%. The regions in which planning permission offers the least price premium are the East Midlands (4.5%), West Midlands (8.2%), and South West (9%).
