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Auction buyers warned over planning nightmare

Wednesday, 20 February 2008 12:00 AM

Homebuyers have been warned to consider potential problems with planning permission when purchasing property at auction.

According to property experts Auction Finances, the number of UK homebuyers looking to purchase unusual or unique property with an eye to converting it into a dream home is increasing.

However, buyers are being caught out when buying unusual properties by failing to secure planning permission for their planned renovations.

"Auctions are a great way of picking up unusual properties. We've seen people shunning new build houses to buy churches, barns, windmills and schoolhouses in a bid to create their individual dream home," said Scott Hendry, new business manager at Auction Finance.

"However, before jumping in and bidding for an unusual property to turn into a home, buyers should check the planning status of the site. This will avoid disappointment and the potential for an expensive mistake."

According to the organisation the UK's self-design and build property market is now worth more than £3.8bn - with the popularity of the trend both highlighted and exacerbated by property television shows such as Grand Designs and Property Ladder.

"A good proportion of properties auctioned for redevelopment will have had planning permission of some kind granted before they go under the hammer," continued Mr Hendry.

"This adds value for the seller and in cases where it has not been done it is worth enquiring at your local planning department to find out why before you decide to make a bid.

"This is an approach we often see from some of our more experienced clients."

For bidders who secure an unusual property and wish to secure planning permission, Auction Finance has this advice:

  • If the project is tricky or controversial, always get professional advice from a planning consultant.
  • If you think your application may be refused, withdraw it. You can reapply for free, but a refusal may become a black mark against the planning history of the plot or development.
  • Be flexible. Planning officers are often glad to offer informal advice, so show you are willing to compromise on your plans.

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