A recent report commissioned by eXp UK has revealed an alarming statistic for the property sector – of the 5,600 UK homeowners surveyed, over 12% admitted to undertaking major renovations, such as extensions or conversions, without securing proper planning permission – or in some cases, even realising they needed to.
This report highlights a significant compliance issue that impacts not just homeowners, but also property developers and sourcing agents, who frequently work on or invest in properties requiring modifications.
Key Findings From the Report
The report’s findings are concerning and shed light on a widespread issue within property renovation:
- 12% of homeowners failed to secure planning permission, with 6% admitting they knowingly proceeded without it, and another 6% unaware they needed it.
- Of those knowingly bypassing permission, 21% took the risk because they believed they wouldn’t be caught
Non-compliance with property planning opens the door to potential enforcement notices or prosecution from local authorities – leaving owners at risk of undoing costly improvements or paying hefty fines.
“What’s quite astounding is that a notable number of those undertaking a major renovation are doing so without ensuring the proper planning permission is in place. In doing so, they leave themselves open to enforcement and prosecution from the local planning authority if they aren’t able to secure a retrospective planning application. This can be a very costly mistake indeed, as having invested a considerable amount of money, they will find themselves back to square one and out of pocket.”
Adam Day, head of eXp UK
Why Property Planning Permission Matters for All Stakeholders
Whether you’re a sourcing agent identifying opportunities, or a property investor funding renovations; securing planning permission is more than just a bureaucratic process – it’s essential for long-term legal and financial security.
Risks of Ignoring Planning Regulations
Enforcement Notices: local authorities can demand that unauthorised changes be reversed, even after significant investments
Devaluation of Property: renovations without property authorisation could reduce your property’s market value and make it difficult to sell
Investor Concerns: for property investors and sourcers, renovation work without legal compliance can deter buyers or lenders
Legal and Financial Penalties: non-compliance could result in fines or legal action, which can quickly eat up any cost savings from skipping permission.
Learnings Property Professionals Can Take
This report should act as a reminder that non-compliance can ultimately cost heavily in the long-run – and isn’t confined to homeowners. It can impact investors, developers, suppliers and financial stakeholders.
To help prevent these kind of fines or other frustrating council actions, property investors and sourcing agents should follow these measures:
Understand the planning process
Familiarise yourself with the local authorities planning regulations and approval process, particularly for extensions, conversions and structural changes.
Advocate for Due Diligence
When collaborating with homeowners, always ensure planning permissions are in place before any new renovation projects begin, but also as a sourcing agent, when assessing a property and creating your presentation, bear in mind the ‘material information’ which must be included, of which planning consents are a part; has the property that you are looking to sell on got appropriate planning and building regulations consent in place with documents to prove.
Work with Experts
Engage professional surveys and architects who can guide you through the planning applications to avoid errors and oversights. Not doing so, could seriously cost you down the line.
NAPSA Stands For Compliance
We encourage all our sourcing agents to prioritise compliance in their property deals. They do this by understanding and adhering to planning regulations if they are project managing, and making sure their investor clients are aware of and take the right action to obtain permissions in advance. Or when creating a presentation for an investor on a potential deal, they include appropriate planning and building regulations material in any deal presentation.
NAPSA offers resources for sourcing agent members – ideal if you’re new to the property sector or wanting to grow your business professionally and compliantly. You can join for just £195 +VAT per year and receive expert guidance and resources from our team.
We also provide free guidance to investors, to help keep your business protected. You can register for free via this form: https://www.napsa.org.uk/property-investors/
