On 31 August 2020, new rules were introduced allowing the addition of two-storey extensions to residential homes without needing planning permission, meaning there has never been a better time to extend, and without the hassle of going through the lengthy permission process. Although, the new ‘airspace’ permitted development scheme does have some rules attached; it will only apply to detached homes, and those built between 1948 and 2018 and you are not able to take advantage of this new relaxed regulation if your home is in a conservation area. However, there are thousands of homes that can benefit from this and it could add huge value to your property. It also gives you the opportunity to stay in a property you do not want to leave but were slowly outgrowing. It allows you to extend current family homes, split properties into two dwellings, or even take on a whole new project, by purchasing a property to extend and sell for a profit or to rent.
New Commercial to Residential Conversion Regulations
The government recently introduced new regulations that will give greater freedom to convert a larger range of commercial properties than previously allowed. Commercial properties that have lay empty can now be converted into residential properties to help tackle the shortage of houses – without planning permission.
The new rules, that came into effect in September of this year even extend to demolishing old commercial, derelict properties so that a new building can be created for the purpose of creating residential homes.
Bridging Loans
Many borrowers are utilising the bridging option at present to beat the stamp duty headline. If you move quickly, you could not only take advantage of it but also make use of the relaxed planning regulations. That way you could extend the property into either a house to sell, for rental, or to capitalise even further you could turn it into a HMO.
You could benefit even further, if you are able to purchase a residential property before the stamp duty deadline and then extend the property which would instantly add value. You could then sell and use the funds made to create a bigger project and continue this pattern to increase your portfolio.
Development Finance
If you are thinking of developing, these planning regulations could make it easier for you to find a suitable site, as you will now be able to look at old commercial properties as well as any other sites such as plots of land or old residential sites.
The UK’s population is continuing to grow. The Office for National Statistics reported that England’s population alone grew by 361,200 in 2019 (up 0.5% from mid-2018). The need for housing has never been so high, and this is a great time to develop affordable homes using a development facility. Once the development has been built and is ready for people to move in, you could easily transition on to a buy-to-let product or use a bridging loan to pay off the development facility whilst the house of flats are sold to buyers.
The continued increase in demand for housing makes it the ideal time to take advantage of these new regulations. The opportunity is there, and if you need finance, we can help. Give us a call on 0333 123 4556 to discuss your projects or cases.
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