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Study - Planning permission can boost property prices

A new study by Birmingham estate and lettings agent, Barrows and Forrester, has uncovered how much properties could make in the current market when selling with the additional benefit of pre-granted planning permission. 

Findings of the study

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 impact it had when pricing a 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 increase property price expectations by 21% or £46,000.

Cities with the biggest house price increases

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

Selling with pre-granted planning permission in both Birmingham and Bournemouth can also increase the value of a property by 51%. Both areas are also home to the highest premium in a financial 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 raise house prices. 

Cities with the lowest house price increase

However, the ability for a quicker build doesn’t have the same effect in every city. 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, said: “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.”

Forrester concluded: “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.” 


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