- This is Money outlines how property buyers can protect themselves
More than 94 per cent of estate agents have been asked to sell properties with unlawful renovations or extensions, data suggests.
Loft conversions, removing load-bearing walls, and installing new windows overlooking neighbours’ homes all need planning permission – but they are among the most common renovations done without it, according to Direct Line Home Insurance.
Estate agents said they had been asked to sell an average of six homes in the last year without the right permissions.
This is a problem for buyers because, in the worst-case scenario, the local council can insist that the house is put back to how it was before the work was done.
Tricky position: Over 94% of estate agents were asked to sell properties with renovations or extensions which didn’t have appropriate planning permissions in place last year
Almost a third of estate agents surveyed by Censuswide for Direct Line Home Insurance said buyers went on to purchase the property regardless – but 31 per cent said the buyers insisted that the sellers got retrospective permission or building consent before they went any further.
In addition, 27 per cent pulled out of the purchase altogether, causing the chain to collapse.
About a third of estate agents said selling a home without planning permission will slow down the process, with 28 per cent claiming it took so long to resolve that the buyer’s mortgage offer expired – meaning three to six months.
What renovations need planning permission?
Dan Simson, head of Direct Line Home Insurance, said: ‘There is a lot of conflicting advice on which building alterations require planning permissions.
‘While it can be tempting to start a job without checking, it’s important to do your research to know what is required.
‘While permissions can be granted in retrospect, for some unlucky owners, the work may need to be reversed leaving householders heavily out of pocket.’
‘If you are looking to start building work on your home, it’s important to get the required approvals first.
‘A local authority planning department should be able to provide relevant guidance on what is permitted and be mindful that you will need to let your insurer know as well in advance of this.’
| Renovation | % of estate agents that have seen it done without planning permission |
|---|---|
| Removal of load-bearing walls | 28 |
| New window overlooking neighbouring property | 25 |
| Loft conversion | 24 |
| Removal of chimney breast | 24 |
| Building a porch | 23 |
| Building a new structure | 22 |
| Back and side extensions | 21 |
| Garage conversion | 21 |
| Changes to a listed building or home 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 you buy a home with an ‘illegal’ extension?
If you find a home where renovations have been done that seem suspect, the first thing to do is to double check whether planning permission was required.
In the best case scenario, the works done on the property would fall into the sphere of permitted development rights, meaning the work didn’t require planning permission. Check with the local council to see if this applies, before completing your purchase of the home.
If it turns out that permission was needed, and you still want to buy the home, make sure you have legal 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 home that has had ‘illegal’ work done, it’s a good idea to apply retrospectively – or insure yourself against the costs
The indemnity insurance would cover the costs or loss of value to the market value to the property if the local authority ever sought to take issue with the work being done without planning permission.
As a prospective buyer, you could insist that the seller gets retrospective planning permission or building regulation approval.
As an alternative, you could negotiate the price of the property down significantly, factoring in the costs and risk you might incur to get the situation sorted.
Once purchased, you might need to apply for planning permission, running the risk of it being refused.
You could then end up being responsible for restoring the property back to how it was before, which could prove expensive and time consuming. Relevant building regulations must also be adhered to.
The process of sorting out a property purchased without planning permission for works completed could be lengthy and stressful, so only you as the potential buyer can decide whether the home is worth it.
