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Understanding where planning permission rules came from and why they exist holds the key to making sense of them in a modern context. Right now, estimates suggest that at least 300,000 new homes need to be built every year for the next decade, just to ensure the government meets its own lofty housing targets.

In reality, the likelihood of this actually occurring is practically zero.

Critics believe that sweeping changes to planning permission rules and general building regulations could hold the key to turning around the UK’s escalating housing crisis. Whether any such alterations come about remains to be seen, as many developers and construction companies continue to find themselves blighted by overly complex rules and regulations.

A brief history of planning permission

As the Second World War drew to a close, the reconstruction of towns and cities across Britain became the government’s top priority. Plans were also drawn up for developing entirely new towns and cities from scratch.

To get things started, the 1946 New Towns Act established a programme for the development of new towns. This resulted in several areas of the country being designated for new town and city projects, the first of which would emerge as Stevenage.

However, the 1947 Town and Country Planning Act followed soon after, placing heavy restrictions on where rapid urbanisation of rural spaces would be permitted. At this point, planning permission needed to be issued by local councils for any developments to proceed.

In 1955, conservative minister Duncan Sandys requested that local councils prohibit the development of new residential zones on the edges of towns and cities, so as to:

A: Check the further growth of a large built-up area.
B: Prevent neighbouring towns from merging into one another.
Preserve the special character of a town.

From the 1990s

There was a moderate easing of planning permission restrictions in the 1990s, or when the Town and Country Planning Act had been updated. At this point, it would only be necessary to apply for planning permission for projects that formerly met the definition of “development”. Things like changes in the primary use of land or buildings, interior alterations, and projects that do not alter the external appearance of buildings could all be performed without applying for approval.

A General Permitted Development Order was implemented in 1995, providing even greater scope and flexibility for developers. Later in 2013, the government acknowledged that the need for residential spaces across the UK should prompt a rethink of current restrictions.

The rules were modified once again, and the conversion of certain commercial properties into residential homes became exempt from planning permission guidelines. However, some of the country’s less reputable and responsible “cowboy” developers exploited the new freedoms, creating tiny and uncomfortable flats out of office spaces that were never meant to accommodate residents full-term.

Recent changes to planning permission

Most of the recent changes to planning permission rules have focused on raising residential standards. New rules were introduced towards the tail end of the COVID-19 crisis to allow more types of commercial conversions, including the repurposing of medical facilities and gyms into residential units.

As things stand, anyone looking to build something new, make significant changes to an existing building, or alter the main use of a building needs to apply for planning permission. None of which is helping new and aspiring developers get their projects off the ground, but there is at least a dedicated Planning Portal now, which is designed to simplify the process of obtaining planning permission.

Property developers and construction companies have not had an easy ride as of late. Ever since the COVID-19 crisis hit, the costs of essential building materials have skyrocketed to unprecedented highs. The war in Ukraine took a further toll on already stretched supply lines, making it impossible for developers to turn a profit without imposing their own lofty price hikes.

With the UK facing its worst collective living-cost crisis in recent history, the immediate outlook for the average household is fairly bleak. But there may be at least a small degree of respite on the horizon for builders and property developers, as construction costs are beginning to plateau.

Better yet, there is reason to believe that building costs will begin to decrease going into 2023, enabling developers and construction companies across the UK to kickstart (or restart) their planned projects.

Will the economic downturn trigger a reduction in building costs?

One of the reasons why building costs increased significantly towards the tail-end of the COVID-19 crisis was the simply insurmountable divide between demand for building materials and available supply. Developers and construction companies across the UK raced to keep up with demand, and in doing so completely swallowed up the available contingency of key materials.

Supply lines dried up, availability of essential materials hit rock bottom and prices skyrocketed as a result.

When this happens, many developers and construction companies decide to shelve planned projects or put their existing projects on hold. They simply had no realistic way of generating meaningful profits with such elevated building costs, so they made the decision to wait things out. Their aim was to sit tight until the market returned to some kind of normality, rather than paying over the odds, and reducing the profitability of their projects in the meantime.

All of this seems to be paying off for many, who have already noted a significant reduction in the cost of some essential building materials. Some have even reported that compared to the end of Q2, they are now receiving quotations up to 10% lower on key materials and components.

These reductions in building costs are resulting from two things: A period of comparatively low demand when costs were disproportionately high and the rectification of a broad range of supply chain issues. Key building materials are still not available in the same plentiful supply they once were but are no longer as difficult to come by.

As a result, the manufacturers and suppliers are not able to charge such high prices for them and low prices are gradually trickling through to property developers and construction companies.

In forwards into 2023

Of course, putting too much stock into what is happening (or appears to be happening) right now may not be advisable. The events of the past few years have taught us that nothing is set in stone, and we have no idea what may be around the next corner.

As the crisis continues to escalate in Ukraine, it is perfectly plausible that major supply chain issues could once again cripple the UK’s property development sector.

Even so, the consensus seems to paint a picture of a slightly more stable and predictable future for the industry as a whole. Building material, component and labour costs may remain elevated indefinitely but are unlikely to hit the same kinds of peaks as those experienced at the height of the COVID-19 crisis.

Property developers and construction companies are exercising greater care and caution than ever before, and in today’s turbulent climate are unwilling to take the kinds of risks they would once have happily accepted as the norm.

The past 12 months alone have added an average of £39,000 to the market value of a UK home. Millions of homeowners have found themselves sitting on a small fortune and understandably want to get the best possible return on their investments.

Conducting home improvements and renovations is one of the best ways to maximise a property’s value before listing it for sale. But exactly how much does it cost to renovate a home, and how can you ensure the improvements you make generate respectable profits?

How much do renovations cost?

A combination of factors over the past few years has seen the costs of property renovations skyrocket. From basic building materials to labour to the latest green technologies, prices across the board are on the rise.

The average loft conversion, for example, now costs around 25% more to undertake than it did two years ago. Alarmingly, the cost of installing a new bathroom in a residential property is also up by as much as 40%.

Renovation costs vary significantly from one property type and area of the UK to the next. According to the Homeowners Alliance, this is how much you can expect to pay to renovate and improve your home in 2022:

Source: hoa.org.uk

On top of the above, experts advise allowing an additional 10% to compensate for unexpected issues and additional costs encountered along the way.

What are the best renovations to add value to a property?

When it comes to generating the best possible ROI with property renovations, some home improvements are known to generate bigger profits than others.

For example, a loft conversion has the potential to generate the biggest profit of all (an average 16% property price increase), followed by a double-story extension at 15%. A single-story extension will typically increase a home’s value by 11%, whereas a complete kitchen renovation can contribute 10% to a property’s resale value.

Meanwhile, adding a conservatory to your home could increase its market value by 9%; a single garage can add an average of 7% to the value of a home; and a medium-scale bathroom refit can contribute 4%. Surprisingly, simply painting and decorating the interiors of a property can boost its asking price by as much as 3%.

How to avoid overpaying

Irrespective of the type of renovations you set your sights on, it is up to you to ensure that you don’t overpay. Before entering into a contract with any builders or construction companies, ensure that they are registered with the likes of Trustmark, the National Federation of Builders, or the Federation of Master Builders.

Using Checkatrade to verify the credentials of other types of contractors is highly recommended, as is requesting recommendations and references from past customers.

Fixed quotations should always be issued in advance of the commencement of a project, and all essential terms and conditions must be agreed upon in writing. You should also be given as much time as needed to evaluate the provider’s reputation and stature, with no pressure to go ahead at any time.

Online reviews and recommendations alone can give you a good idea of whether a service provider or contractor is worth doing business with. If there is a disproportionate quantity of negative feedback or anything untoward about their track record, you could be taking a risk by putting your home in their hands.

Up and down the country, landlords and everyday households are scurrying to find any and every viable solution to the UK’s spiralling energy bills. This year may have brought Britain’s hottest temperatures on record, but the prospect of an exceptionally bleak winter is already taking its toll on the nation’s welfare.

The escalating living-cost crisis was and is one of the most pressing issues for Liz Truss, who just days into her premiership announced plans to freeze energy bills at an average of £2,500 a year for two years. The announcement came as part of much broader support packages for households and businesses, but whether she remains in power long enough to come through on any of her pledges now remains to be seen.

Indeed, there are those in government (including several prominent members of the Conservative Party) who believe Liz Truss will be ousted before the end of the month.

Either way, capping energy bills at an average of £2,500 a year for two years is not something most would praise as a major step in the right direction. It still represents a major increase from last year’s average household energy bill of £575 for gas and £764 for electricity.

Striving for longer-term savings

A joint study conducted by Scottish Power and the World Wildlife Fund (WWF) found that the average household could save almost £1,900 per year by upgrading to the latest green technologies. This includes advanced insulation, the installation of heat pumps, and the use of solar panels.

All of these devices work in different ways, but they are ultimately designed to reduce energy consumption and bring household energy costs under control.

Unfortunately, stepping up to these kinds of green technologies is not something that comes cheap. It can cost anything from £7,000 to £13,000 to install a heat pump, while solar panels for the average home will typically carry a price of between £5,000 and £11,000. With the living cost crisis biting harder than ever before, this simply is not the kind of money most people have at their disposal.

This is where government bursaries and grants can offer at least a modest lifeline to many households and landlords. The Green Homes Grant scheme has now come to an end (at least in the sense that no further applications are being accepted), but there are still initiatives like the Boiler Upgrade System that can pave the way for significant discounts.

One grant application can be submitted per property, which (if successful) could be worth as much as £5,000 to £6,000 off the price of installing a heat pump or biomass boiler, either of which could significantly boost a property’s energy efficiency and effectively pay for itself long-term.

Improved property values

Along with reduced household energy bills, property owners are being prompted to consider the extent to which green improvements can increase a home’s market value. Specific figures are hard to come by, but the study conducted by Scottish Power and the World Wildlife Fund (WWF) suggested that the average home could see a £10,000 boost to its market value through the adoption of green technologies.

But as all green technology grants and incentives introduced by the government to date have been strictly temporary in nature, those looking to take advantage of any such discounts are advised to do so as promptly as possible. Landlords in particular stand to make significant savings by investing in green technologies for their rental properties, as the countdown continues to the introduction of the government’s tightened carbon emissions rules for all UK households.