Linda Jeffcoat of Stacks Property Search says:
"There's also the possibility that homeowners are unsure of the implications of the changes, when they do and don't apply, and what the neighbour consultation scheme is really all about. So, in-a-nutshell, and in layman's terms, this is what we're talking about:
The crux of the changes surrounds the GPDO - the General Permitted Development Order, which allow homeowners to carry out certain changes without planning permission. The recent legislation extended the GPDO in order to stimulate the economy by encouraging home owners to spend money on their properties.
The most significant changes are to the size limit for the depth of single storey domestic extensions in non-protected areas. This has increased from 4 metres to 8 metres for detached houses; and from 3 metres to 6 metres for all other houses. The rule that restricts an extension to no more than 50% of the property's curtilage remains. And there are restrictions as to the height of extensions that must be adhered to.
To further confuse the issue, the rules that came into force on 30th May 2013 are time limited and expire on the 30th May 2016.
There are some very handy interactive guides on the Planning Portal's website. Go to http://www.planningportal.gov.uk/permission/ for detailed guidance about what you can and can't do.
Where this relaxation becomes really interesting is in terms of buying a property that requires improvement, and has potential for extending. Historically, properties that have 'potential' were in strong demand; but the recession changed all that, and buyers became cautious about taking on projects that could turn into terrifying money-pits. These days there is much less competition for what the estate agents like to call 'exciting projects', and the auction houses are no longer full of eager, and sometimes naïve, bidders for rural wrecks.
There are of course enormous advantages to buying a property that requires anything from a facelift to a complete overhaul. Buyers can customise the property to suit their own requirements without having to rip out work that they have effectively paid for within the purchase price. And the improvement element of the property doesn't carry stamp duty, so substantial savings can be made in that respect.
But the greatest hurdle for buyers, and the reason that the auction rooms are rather less crowded post 2007, is that finance is extremely difficult to come by for property that requires work. Lenders like to be able to see an exit strategy if a borrower defaults, and a half-finished project is a headache that can be easily avoided by rejecting
finance requests on property that is at the uninhabitable end of the spectrum.
This opens up the market for buyers who are cash rich and who don't require a high loan to value. So if you're lucky enough to be in that position and have a taste for a Grand Designs type adventure, then now is a good moment to take advantage of a sector of the market where there are good deals to be found."
Stacks has the following general advice for home owners looking to add value by improving property:
Added value layout:
- Replace small separate kitchen and living areas to make a large kitchen/living space
- Add a downstairs cloakroom if one doesn't already exist
- Opening up kitchen/dining to the outside
- Incorporating an integral garage into the living space (replace lost garage storage space with a big garden shed)
- making bedrooms and bathrooms en suite
Budgets:
- Write down all the changes you want to make and allocate budgets for each element. Only go over budget on one element if you can save it on another.
- When budgeting for a straightforward extension, you can work on the basis of £120-£150 per square foot for shell and first fix.
Generally speaking:
- If you have great open-plan plans, strongly consider leaving at least one separate living room, and/or enabling some space to be shut off by way of large doors.
- If you're making changes to a property, this is the time to increase storage space - you will never regret it!
- It's also the time to add electrical sockets and lighting, and to think about methods of wiring in/hiding all the extra bits of electronic kit that have become part of everyday living.
Linda Jeffcoat says:
"Whatever you do to the property, unless it really is for life, consider the resale value. You may be making the space work better for your own needs by turning four smaller bedrooms into three larger ones, but it will almost certainly have a negative effect on value. Similarly, changing the balance of the accommodation, so that there's too much living space for bedrooms, or vice versa, will have a negative impact too.
Be careful about overextending - for the plot or for the neighbourhood. Don't leave too little garden for the property by building over the garden; and avoid making your house the biggest and best in the street. It's rare to sell in either of these circumstances at top dollar. You will get a much better return by buying the worst house in the street and improving it so it comes into line with the next tier up."
