New Permitted Development Right Unveiled for House Division 🏡
Just hours after the release of the Autumn budget, a notable announcement caught our attention: the introduction of a new Permitted Development (PD) right allowing any house to be transformed into two flats without the need for planning permission.
Initially, this move may strike some as bold, perhaps even an attempt to appeal to the aspirations of the 20-30-year-old demographic aspiring to homeownership. However, as we delve deeper into the potential implications, one might wonder about the motivations behind this seemingly unconventional decision.
Could it be an effort to address the challenges within the strained planning system, exacerbated by the post-COVID landscape? On the surface, this new PD right appears to expedite the introduction of new dwellings to the market, circumventing the traditional planning process. Alternatively, could it be a strategic move to encourage downsizing among the baby boomer generation, allowing them to remain in their property after its subdivision?
Currently, dividing a house into two flats is not a prevalent model for value extraction due to soaring land values and construction costs. The expense of complying with building regulations often renders such projects non-viable at existing house prices. The question arises: Why would a landowner undertake such a subdivision, potentially borrowing significant amounts without a profit incentive?
As we ponder the potential beneficiaries of this new PD right, the landscape remains unclear. The devil is indeed in the detail and while this is only a headline (the specifics are yet to be revealed), the very essence of PD rights is to streamline the process by reducing intricate details.
We invite you to share your thoughts on this development. The comments section is open, and we look forward to engaging in a collective discussion. Stay tuned for updates as we navigate through the intricacies of this new development in the property landscape. 🍁🏠 #AutumnBudget #PropertyDevelopment #PlanningChanges
