The South East of England has the highest proportion of planning permission-ready properties, according to research by development specialists, Searchland
Searchland studied the proportion of properties available for sale with planning permission and the price premiums of these properties.
The research found that planning permission-ready properties garnered more attention from investors seeking expansion or renovations, despite incurring a 12% average price increase across England.
Around 3 in 10 properties in the UK are development ready
The East of England also had a strong supply, with 20.5% of the 1,787 homes holding permission. The South West accounts for 20.3% of the 1,769 properties in the region.
It is difficult to find development-ready properties becomes elsewhere in the country. The East Midlands records the next lowest proportion at just 8.4% with permission. In the North East preapproved plans stand at only 1.8%.
This research highlights the scarcity of homes with planning permission in regions that incur higher costs for acquiring these permissions.
London typifies the situation, where only 3.2% of homes have permission, leading to a 20% price increase. In Yorkshire and the Humber, just 5.0% of homes have approval, warranting a similar 20% premium. In comparison, the average premium across England is 12%.
In regions where properties with planning permission are more common, the price difference is insignificant. In the South West, where 20.3% of homes fall into this category, the premium is a mere 2%.
Is getting planning permission too difficult?
“Gaining planning permission is a huge headache, as you have to satisfy the local council, deal with potential issues like complaints from neighbours, and play a long waiting game, so it’s no surprise that investors are on the hunt for properties that already have this in place,” said co-founder and CEO of Searchland, Mitchell Fasanya.
“Not all areas of England are the same, as it’s far easier to buy a development-ready property in the South East, East of England, and the South West compared to every other region,” he added.
“You also don’t have to pay a big premium in those areas compared to regions like the North West, Yorkshire, and London, where the supply of homes with planning permissions is so low that you have to fork out a hefty premium of more than 20% to land one of those coveted properties,” concluded Fasanya.
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