Buying a property that already has planning permission
A planning permission is an asset, but only if it is still live, the conditions are satisfied, and the consent matches what you intend to build.
A property with an existing planning permission is worth more than one without, because the buyer is spared the cost, time and risk of obtaining consent. That premium is real and it is usually reflected in the price.
Whether the permission is actually useful depends on three things: whether it is still capable of implementation, whether the conditions can be satisfied, and whether it permits what you intend to build.
Is the permission still live
A planning permission usually expires if development has not begun within three years of the grant. A permission that has lapsed is worth nothing, however impressive the drawings.
- Check the decision notice for the expiry date and any extension
- Establish whether development has begun, because implementation is a legal test rather than a physical one
- Check whether any conditions require approval of details before work starts, and whether those have been discharged
- Confirm the permission has not been superseded by a later application
The conditions
Conditions are where permissions become expensive. A consent that requires affordable housing, a financial contribution, specific materials or a drainage scheme can carry costs that were not obvious from the headline approval.
- Pre-commencement conditions, which must be discharged before any work starts
- Section 106 obligations, including affordable housing and financial contributions
- Community infrastructure levy liability, which can be substantial and is assessed on the floorspace created
- Materials and design conditions, which restrict specification
- Drainage, ecology and highways conditions, each requiring reports and approval
Does it permit what you intend
The permission authorises a specific scheme. If you intend something different — a different layout, more units, a different external treatment — you need a new application or a variation, and the existence of the current consent does not guarantee approval of a change.
It is also worth checking that the approved scheme is what the market wants. A permission for something unbuildable at a profit is an asset of limited value, and it is not unusual for a site to carry a consent that no longer reflects current costs or demand.
Common questions
- How long does a planning permission last?
- Usually three years from the date of grant, unless the decision notice says otherwise or an extension has been agreed. Development must have begun within that period, and implementation is a legal test. A lapsed permission has no value and a fresh application would be required.
- Is a property with planning permission worth more?
- Usually yes, because the buyer is spared the cost, time and risk of obtaining consent. The premium depends on whether the permission is live, whether the conditions are satisfiable, and whether the approved scheme is commercially viable. A consent for something unbuildable at a profit is worth little.