New changes to permitted development rights coming soon

In this article, LDN Properties look at the property development rights changes that will come into effect and explain them in more detail.

You might have heard about changes planned affecting permitted development rights in the UK. While you may be aware of these changes, many developers and homeowners are unaware of how the legislation will affect them. As of September 2020, major new permitted development rights will come into force which will undoubtedly have a knock-on effect for professionals working in the property industry.

A summary of the changes to permitted development rights coming into effect

Under the new guidelines three new regulations will be implemented.

The first phase of regulations affects extensions of buildings upwards and will enable existing purpose-built detached blocks to be extended upwards in order to facilitate the creation of new self-contained dwellings. This new regulation came into effect on August 1st, 2020 as part of the Town and Country Planning (Permitted Development and Miscellaneous Amendments) (England) (Coronavirus) Regulations SI 2020/632.

The second phase of changes came into effect on 31st August 2020, affecting two distinct areas. Now, extensions on existing dwellings will be allowed in order to increase the potential for living space by creating additional storeys, while another change will enable the construction of additional floors on free-standing blocks, terraced houses and in specific commercial uses to enable the creation of additional self-contained dwellings.

The third phase of changes to PDRs came into effect on 31st August 2020. This phase outlines PDRs (new Class ZA), subject to specific conditions to enable the demolition of certain types of buildings with the construction of residential dwellings in place.

This is a brief summary of the new legislation which has come into place, however, the regulations are somewhat complex, so further research is advised if you are planning on building a new development scheme. The new PDRs aim to ‘deliver much-needed new homes and revitalise town centres.’

How will these changes affect property professionals?

There have been concerns that new PDRs may lead to too much freedom for property developers, and that this could lead to an increase in substandard housing. However, just because the new regulations have been granted, it does not mean that building new developments will be a significantly easier process for developers as different parties can still object to plans. Furthermore, landlords will still be subject to covenants such as tenants’ right to the quiet enjoyment of the property that they rent. Potentially, this could restrict plans to build where noise might affect tenants’ quality of life in their homes. Similarly, extending upwards could impact upon regulations relating to light and the surrounding properties. Property developers should ensure that steps are taken to ensure that these issues are dealt with before continuing with plans to build new self-contained properties.

Evidently, there are many factors that property developers need to continue to be mindful of when the new legislation comes into effect. While the new PDRs may help to speed up the process of applying for development rights and reduce the cost of applying, This is no excuse for shirking responsibilities, and it is essential that you are fully aware of your rights under the new regulations.

However, it is clear that the new legislation offers property developers the opportunity to take on projects that may have been difficult or even impossible otherwise. Current homeowners will have the opportunity to significantly increase the value of their properties while helping to meet the demand for housing stock. The government hopes that the new regulations will create greater development opportunities, leading to a rise in property sales and an increase in land value. The demolition aspect of PDR will facilitate regeneration in cities and enable developers to repurpose old or dilapidated buildings which are no longer in use.

Other things to bear in mind

New PDRs dictate that the demolition of an existing building must be followed by the subsequent construction of a residential building, and does not permit demolitions where there will be no subsequent construction.

It is worth noting that the new legislation will not apply to a number of significant areas, such as National Parks and World Heritage Sites, nor does it apply to listed buildings and scheduled monuments. Specific safeguards may be in place if the property in question is in an agricultural environment or an area in which there are safety hazards (for example, military explosive storage areas).

After the application is submitted the LPA will make a decision on the application for prior approval within an eight-week window. If the decision has not been finalised within the allotted eight-week period, the applicant has the right to appeal. It is essential that any development works do not begin before written approval is received. Finally, it is worth noting that both demolition and the creation of the new building must be completed within three years of the date on which approval was granted.

We hope that you have found this short guide to be helpful. Because the changes affecting permitted development rights are complicated it is vital that you are fully aware of how the changes will affect you. In terms of how the new PDRs will shape the future of property development, only time will tell. In the post-Coronavirus world, it is possible that the new legislation will contribute to economic growth and recovery which will be invaluable to our towns and cities. Conversely, PDR changes could lead to a rise in substandard accommodation hastily constructed by unscrupulous developers. Regardless of what the ramifications will be, property developers should now take the time to arm themselves with the necessary information in order to comply with and take advantage of the new legislation.

Kindly shared by LDN Properties