Homes 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, new research from Home Sale Pack has revealed.
Home Sale Pack analysed existing 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.
The analysis revealed that the average asking price for a property with pre-agreed planning permission was £475,191.
This was a premium of 11% compared to comparable properties listed for sale without the added bonus of planning permission already in place.
This premium was equivalent to an additional monetary value of £47,107.
Analysing the data on a regional level revealed 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 was £393,583, 19.9% (£65,366) higher than the wider average house price of £328,217.
Pre-agreed planning permission also brought about 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 were the East Midlands (4.5%), West Midlands (8.2%), and South West (9%).
Ruth Beeton, co-founder of Home Sale Pack, said: “If you’re selling a home with existing planning permission in place, you’re going to find yourself in a strong position.
“Prospective buyers with an appetite to expand a property over time will often lean towards a property with pre-agreed planning permission in place as it allows them to sidestep a time-consuming and costly process.
“Even if the permission that’s been granted doesn’t match a buyer’s vision for their new home, it’s still a really good sign that any future planning requests will be granted because the local authorities have already shown a willingness to allow the home to be improved.
“This is another example of how sellers can benefit from providing buyers with up-front information about a property because not only does it improve the speed and certainty of their sale, but it can also make their property more appealing and help them to command a higher price.
“As such, you could be missing out on quality buyers because they’re not able to see the true value of what you’re selling.”
