The best proportion of properties on the market with planning permission already in place are within the South East of England, as nearly three in 10 (28.2%) are ready-made for improvement.
Properties that have already got permission are enticing to traders wanting so as to add extensions or refurbishments, despite the fact that they incur a median home value premium of 12% throughout England.
Searchland, the event website sourcing specialists, analysed the proportion of properties out there on the market with planning permission, in addition to the worth premium for getting such a property.
The East of England is one other area with a robust provide, as 20.5% of the 1,787 properties have permission. After that comes the South West, with 20.3% of 1,769 of the properties within the space.
It’s far tougher to discover a development-ready property exterior the South East, East and South West, as the following lowest proportion is the East Midlands, the place solely 8.4% have permission.
The place development-ready properties are uncommon – and costly
Should you’re a developer within the North East it’s far tougher to discover a house with planning approval already, as simply 1.8% of properties on the market fall beneath that class.
The area additionally incurs the very best premium, as these properties value 22.0% greater than the equal property with out planning permission granted.
This underlines a common pattern, the place in areas the place there’s a scarcity of provide of properties with planning permission you must pay extra for the privilege of shopping for one thing so uncommon.
Certainly, in London solely 3.2% of properties have permission, so you must pay 20% extra. Equally in Yorkshire and the Humber solely 5.0% of properties have approval, and so the premium can also be a big 20%. This compares to a typical premium of 12% throughout England.
In some areas the place there’s plentiful provide of properties with permission the distinction in value is negligible.
Within the South West for instance, the place 20.3% of properties sit in that class, it solely prices 2% extra to purchase a development-ready house.
Co-founder and CEO of Searchland, Mitchell Fasanya mentioned, “Gaining planning permission is a big headache, as you must fulfill the native council, take care of potential points like complaints from neighbours, and play an extended ready sport, so it’s no shock that traders are on the hunt for properties that have already got this in place.
“Not all areas of England are the identical, because it’s far simpler to purchase a development-ready property within the South East, East of England and the South West in comparison with each different area.
“You additionally don’t need to pay a giant premium in these areas in comparison with areas just like the North West, Yorkshire and London, the place the provision of properties with planning permissions is so low that you must fork out a hefty premium of greater than 20% to land a kind of coveted properties.”