Will the proposed relaxation of the planning rules have the positive impact on the economy as intended by the Government or will it further complicate the legalities when selling a property and trigger an increase in disputes between neighbours?
Mark Hobbs a Senior Partner in the Conveyancing Department of Howells Solicitors provides his opinion from a legal point of view.
“At the moment”, said Mr Hobbs, “generally speaking full planning permission is required for extensions exceeding three metres from the rear wall of any property or four metres if the property is detached. The intention is that those limits will be doubled. That clearly will help some people. However, legally, when selling the property, this remains a complicated area from a conveyancing perspective because all of the relevant permissions are not in place. Aside from that, the need for building regulation approval will remain as will the need for all of the electrical and gas installations to be to the relevant standards.”
He continues, “Notwithstanding the proposed increase in the size of any rear extension, other legislation such as the Party Wall Act 1996 will undoubtedly remain and this legislation determines how close you can develop a property to a neighbouring property and further what you must do if you are within three to six metres of that property. We have concerns that a relaxation of the rules may increase the number of domestic disputes. Our advice whether planning permission is required or not is that it is always sensible and neighbourly to discuss any proposed development with your neighbours so that they are aware of how it may impact upon them.”
Having regard to all of these issues, Mr Hobbs questions whether the proposed relaxation of the planning rules will really have any significant impact at all. Whilst he agrees that the level of red tape and bureaucracy that covers many domestic works is a burden, but is not entirely sure that the proposed measures will in fact produce anything other than a modest level of activity.
Mr Hobbs explains, “Until the significant downturn in 2008/2009 the housing market was part of the bed rock of the economy. People aspired to homeownership and the more homeowners that you have the more that is then spent on home furnishings, improvements etc. The reduction in the number of homeowners has been driven primarily by the significant changes that have occurred in the mortgage market making it virtually impossible for people to get onto the housing ladder unless they have a significant deposit or are helped by family.”
The Government continues to push schemes such as First Buy but in Mr Hobb’s experience these are having limited impact in the market place. Furthermore the reintroduction of Stamp Duty Land Tax (SDLT) for first time buyers has placed an additional burden on them at a time when it is difficult enough for them to purchase a property. Mr Hobbs’s view is that the government should either increase the bands at which SDLT is payable or reintroduce a further period of stamp duty suspension for first time buyers. Currently stamp duty becomes payable on any property that is purchased over £125,000.00. Increasing that to £175,000.00 would be of significant benefit in Mr Hobb’s opinion.
If the government’s proposals are taken on board the advice that Howells would still give is to take proper professional advice before embarking on any alterations to your home. A little time and money spent at the beginning of any such transaction could reap significant savings in the long term.