New research from up-front information platform, Home Sale Pack, reveals that homes in England that come to the market with planning permission already granted command an average price premium of 11%, climbing to almost 20% in the North West.
Home Sale Pack has analysed current property listings data* to learn how many homes currently listed on England’s market already have some form of planning permission in place, and how much of a price premium they command compared to wider average house prices.
Homebuyers are often looking to the long-term future when deciding how suitable a property is for their needs, often considering whether they will be able to adapt or extend the property as their requirements evolve over time. Gaining planning permission is a large part of the challenge when looking to extend a property, so a home that comes with permission already granted can be a real bonus. But how much more will buyers pay for a property that is ready to be extended?
Home Sale Pack’s analysis reveals that the average asking price for a property with pre-agreed planning permission is £475,191.
This is a premium of 11% compared to comparable properties currently listed for sale without the added bonus of planning permission already in place. This premium is equivalent to an additional monetary value of £47,107.
Analysing the data on a regional level reveals that in some parts of England, the planning permission premium can be much higher, nowhere more so than in the North West.
The average price for a home with planning permission in the North West is £393,583, 19.9% (£65,366) higher than the wider average house price of £328,217.
Pre-agreed planning permission also brings a price premium of 18.7% in London, 17.2% in Yorkshire & Humber, and 17.1% in the North East.
The regions where existing planning permission carries the smallest price premium are the East Midlands (4.5%), West Midlands (8.2%), and South West (9%).
Which region has the biggest supply of homes with existing planning permission?
While a property with pre-agreed planning permission may command a healthy premium, the analysis by Home Sale Pack shows that they may be hard to find for prospective buyers.
The figures show that there are just 10,359 homes with planning permission currently available in the current market, the largest proportion are found in the South East, home to 27.6% of the national total.
The East of England has 19.9% of the total, followed by the South West (18.6%), East Midlands (14.2%), and North West (5.9%).
The fewest homes are currently available in the North East (1.4%), London (2.9%), and Yorkshire & Humber (4.5%).
