How much does planning permission effect house value?

tim123456789

mrbios wrote: »

The planning is still active, looks as though it was approved in August last year.

Considering the buy price of £280k, the cost to build the end of terrace (£50-70k? by all means correct me! looks to be 4m x 8m over two floors) and the devaluing of the now terraced house in the middle, i can't really see how anyone would make a profit.

You are seriously underestimating the value this new property adds

It's currently a semi, so turning it into a mid terrace won't de-value it that much

so, current value 220K, becomes 200K
value of new build 170K

total value of two properties

370K, minus build costs of 70K = 300K

HTH

tim

GDB2222

http://www.rightmove.co.uk/house-prices/detailMatching.html?prop=58827242&sale=88157250&country=england

This is the one that sold for £220k. It might have been great for you, as you might have got a grannexe on the spare land, but I don't think there's space for a 2-bed house. That could account for the price differential.

The reality is that the sellers of the £280k house have worked hard to get the PP and think they have struck gold. They may be wrong about that, but they probably won't be willing to entertain a £220k offer just yet.

Hoploz

It's not worth the extra to you ... But it woud be worth the extra to somebody else.

How long has it been on the market? If nobody is interested at the higher level then it may reduce over time.

Bear in mind also though, that the one up the road probably didn't have such a large plot - this in itself probably makes this house worth more in terms of breathing space, larger garden, potential to extend, which the one sold earlier didn't offer. Whether the house has been done up or not doesn't seem to make much difference around here but in some areas people might pay more. But would the larger plot outweigh this?

lincroft1710

PP to extend a house, adds almost nothing to sale value.

PP to build new house alongside which can be sold off, adds value of a building plot less value of loss of garden land and of difference between a semi and inner terrace. Thus overall adds significantly to sale value.

Cakeguts

Building another house would require a fair bit of alteration to the existing house. The kitchen door opens onto the side that would be into the new house so that would have to be moved also the bathroom window is on that side so where will the plumbing need to be moved to or would it go down inside the new house? Where are the drains? The landing window is also on this side. Then although the planning permission is for off street parking for both the houses you would have to lose some of the back garden of the original house to create access because the road at the back doesn't extend as far as the garden of what would be the new house.

What I think has happened is that planning permission for an extension would create a house that would be far more expensive to build than it would ever sell for. So house without extension sells for £220k extension costs £100k to build so house then needs to be worth £320. However what with the location next to the railway line and the general area the top price for houses in that area might be only £250k So a huge loss. So they get planning permission for another house. However the numbers for someone actually doing the building on the end of another house means that the buying price of the original house has to be less than £220k in order for them to be able to make enough profit for it to be worth doing.

So OP your original assessment of this situation is that this house is only worth to you about £220k in top condition like the one that sold? In case you feel that you are losing out have you ever been in a house that is as close to a railway line as an extension on this house would be?