Planning permission can boost property prices by as much as 52% when selling

The latest research by Birmingham estate and lettings agent, Barrows and Forrester, has revealed how much more your home could make in the current market when selling with the additional benefit of pre-granted planning permission. 

Barrows and Forrester analysed data on property prices across 20 major cities, looking at the premium attached to homes with planning permission already granted versus those without and what it meant when pricing your property to sell on the market. 

The house price premium associated with planning permission properties across these 20 major UK cities ranges from 1% to 52% but on average, homebuyers can expect it to boost property price expectations by 21% or £46,000. 

The biggest boost is in Bradford, where a home with planning permission sells for 52% more than those without - that’s an £81,789 increase. 

Selling with pre-granted planning permission in both Birmingham and Bournemouth can also boost the value of your property by 51%. Both areas are also home to the highest premium in a monetary sense at £106,674 and £159,049 respectively.

Liverpool (47%), Newcastle (36%), Sunderland (36%), Southampton (24%), Sheffield (32%), Leicester (21%) and Leeds (17%) also make the top 10 cities where planning permission can help boost house prices. 

However, the ability for a quicker build doesn’t have the same impact across the board. In both Plymouth and Nottingham, pre-granted planning permission only brings a 1% premium when looking to sell, while in Swansea it’s just 2%. 

Managing Director of Barrows and Forrester, James Forrester, commented:

“One defining trend of the pandemic has been our push to buy bigger homes and this has been a driving factor behind such steep levels of house price growth.

Of course, not everyone has been able to stretch their budget and so upsizing their existing home has been the next best thing. However, simply gaining planning permission for your property can also be beneficial when looking to sell, even if you haven’t actually had the work done. 

It signals to a buyer that there is greater potential than the existing bricks and mortar and that an extension to the property can be legally achieved. Not only this, but it gives them a head start and allows them to avoid the often protracted process of gaining planning permission in the first place.”  

Table shows the house price premium of pre-granted planning permission in each city and what this equates to on the current average house price
Location AveHP - Sep 2021 Planning granted premium % Planning granted premium £
Bradford £157,209 52% £81,789
Birmingham £208,731 51% £106,674
Bournemouth £313,756 51% £159,048
Liverpool £165,940 47% £77,556
Newcastle £178,638 36% £63,809
Sunderland £129,153 36% £46,073
Southampton £229,777 24% £55,948
Sheffield £186,485 23% £43,192
Leicester £204,820 21% £42,075
Leeds £211,437 17% £36,664
Cardiff £244,895 17% £40,760
Portsmouth £234,281 16% £38,495
Glasgow £165,725 15% £25,254
London £507,253 15% £73,782
Manchester £209,881 13% £27,288
Edinburgh £321,166 6% £18,894
Bristol £312,195 5% £14,130
Swansea £168,257 2% £2,966
Nottingham £172,052 1% £1,765
Plymouth £198,553 1% £1,967
Cities Average £214,540 21% £45,589
Sources Gov.uk September House Price Index Property Data - Planning Premiums Planning premium applied to current house price