In November’s Autumn Statement, Chancellor Jeremy Hunt announced the Government’s intention to consult on one house to be turned into two homes via a new Permitted Development Right.
This change would be great news for investors, as they would no longer need to submit a planning application to convert a single property into two flats – a move that could potentially speed up the redevelopment process.
Allowing additional more affordable homes to be created more easily would certainly help alleviate the current shortfall of both rental accommodation and properties for first-time buyers. Bear in mind that even if full planning isn’t required, it will still be necessary to ensure the changes meet Building Control requirements which, in some cases, can be quite onerous and costly.
However, although the proposed new rule stipulates that the external appearance of the building must not change, there are concerns. Residents would lose the opportunity to challenge this kind of development and without the need for any consideration and sign-off from the local council, there could be a detrimental shift in the demographics of a neighbourhood.
For example, parking is already a problem in many areas and could become an even bigger issue as additional households are created. A change in the culture could have a negative effect on the community, and if a lot of family homes are converted into flats, existing residents may have legitimate worries about the impact on the value of their own homes.
In addition, while this change might create more homes at the more affordable end of the property ladder, it would mean losing larger properties from the existing housing supply. According to Zoopla, there are already not enough three-bedroom homes to satisfy demand from both those upsizing and first-time buyers, many of whom are in their 30s and need a family-sized home from the outset.
While the new Permitted Development Right is currently only a proposal, the Government did state in its written Autumn Statement that it intended to hold a consultation in early 2024 and would move to implement the change this year. We will let you know when this moves forward - which it may or may not do before the General Election.
As far as its other proposals for overhauling the planning system are concerned, we are still awaiting an announcement on the outcome of the consultation that was held last summer.
If you are looking for a property that might be suitable for conversion or would like to discuss the potential value of a property you already own, you can find the contact details for your local Reeds Rains branch here.
The Reeds Rains Content Marketing Team
