Property owners need to read up on when restrictions do and don’t apply and how this affects their neighbours in terms of consultation, according to Stacks Property Search.
The crux of the changes surrounds the General Permitted Development Order (GPDO) which allow home owners to carry out certain changes without planning permission. 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 four metres to eight metres for detached houses and from three metres to six metres for all other houses,’ explained Linda Jeffcoat of Stacks Property Search.
She pointed out that 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.
‘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,’ said Jeffcoat.
‘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,’ she pointed out.
‘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,’ she added.
The result is that the market is opened to buyers who are cash rich and who don't require a high loan to value. ‘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,’ said Jeffcoat.
Stacks believes that home owners looking to add value by improving property should follow some basic advice which includes working out what will add value to the property. For example, replace small separate kitchen and living areas to make a large kitchen and living space is popular, along with adding a downstairs cloakroom if one doesn't already exist.
Other popular improvements that add value can include opening up kitchen dining area to the outside, incorporating an integral garage into the living space and replacing lost garage storage space with a big garden shed and making bedrooms and bathrooms en suite.
When it comes to budgeting the firm advices home owners to write down all the changes they want to make and allocate budgets for each element and to only go over budget on one element if savings can be made on another. When budgeting for a straightforward extension, people work on the basis of £120 to £150 per square foot for shell and first fix.
Another top tip if making changes to a property is to use it as an opportunity to increase storage space and to think about ways of wiring in and hiding all the extra bits of electronic kit that have become part of everyday living for computers and heating and lighting controls.
‘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,’ said Jeffcoat.
‘Be careful about overextending. 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,’ she added.
