Estate agents asked to sell homes that don’t have planning permission

• Almost all (94 per cent) UK estate agents asked to sell properties that didn't have the required plannng permission in the last year
• Price negotiations, mortgage offers expiring and chains collapsing were common outcomes
• Removal of loadbearing walls, new windows overlooking neighbours and loft conversions were the most common works undertaken without permission

New research¹ from Direct Line home insurance reveals how common it is for vendors to try to sell homes without the required planning consent. Almost all estate agents (94 per cent) were asked to sell a property that did not have the required planning permission or building regulation approvals for alterations made to the structure in the last year.

On average, estate agents encountered six homes in the last year without the necessary permissions, with 39 per cent being asked to sell between six and 10 homes in this position.

When it comes to selling homes without the relevant consents, it is a mixed picture. Almost a third (32 per cent) of estate agents stated buyers went on to purchase the property regardless and a similar proportion (31 per cent) say that the buyers insisted that the sellers got retrospective permission or building consent before they proceeded.

According to a third (30 per cent) of estate agents, selling without planning permission will slow down the process, with 28 per cent saying it took so long to resolve that the buyer’s mortgage offer expired. Chains were also affected. A quarter (28 per cent) had chains collapse due to other properties not having the correct approvals and 27 per cent had buyers for properties they were selling pull out, causing the chain to collapse.

Table one: Impact estate agents have been faced with due to sellers not having the correct planning permissions or building regulation 

Source: Direct Line home insurance: 2024

With many factors impacting whether planning permission is required, it is easy to get caught out. Removal of loadbearing walls (28 per cent), new windows overlooking neighbouring properties (25 per cent) and unapproved loft conversions (24 per cent) were the most common extensions or modifications completed without the necessary consent.

Table two: Most common renovations undertaken without the required planning permissions or building regulation approval 

Source: Direct Line home insurance: 2024 

Dan Simson, Head of Direct Line Home Insurance said: “There is a lot of conflicting advice on what building alterations require planning permissions. While it can be tempting to start a job without checking, it’s important to do your research to know what is required. While permissions can be granted in retrospect, for some unlucky owners, the work may need to be reversed leaving householders heavily out of pocket.

“If you are looking to start building work on your home, it’s important to get the required approvals first.  A local authority planning department should be able to provide relevant guidance on what is permitted and be mindful that you will need to let your insurer know as well in advance of this.”

ENDS

Notes to editors

1.      The research was conducted by Censuswide on behalf of Direct Line Insurance with a sample of 250 UK Residential Estate Agents between 17th –22nd July 2024 Censuswide abides by and employs members of the Market Research Society which is based on the ESOMAR principles and are members of The British Polling Council.

For further information please contact:

Direct Line Group:

Chelsey Wheeler

Deputy Head of News and Issues

Email: Chelsey.wheeler@directlinegroup.co.uk

PR team:

Fleishman Hillard

Email: directlinegroupmedia@fleishman.com

Phone: 07808 727280

Direct Line

Started in 1985, Direct Line became the first UK insurance company to use the telephone as its main channel of communication. It provides motor, home, travel and pet insurance cover direct to customers by phone or on-line.

Direct Line general insurance policies are underwritten by U K Insurance Limited, Registered office: The Wharf, Neville Street, Leeds LS1 4AZ. Registered in England and Wales No 1179980. U K Insurance Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Direct Line and UK Insurance limited are both part of Direct Line Insurance Group plc.