Listing a house at auction that comes with planning permission is an excellent way to boost interest from buyers, especially developers, investors and DIY enthusiasts who are looking for properties that have the potential for redevelopment, expansion or adding value.
Planning permission is largely beneficial and can add to the competition among bidders, whether it relates to building an extension, redeveloping the existing structure, or building multiple new homes.
For sellers, it’s essential that their property is marketed to the right buyer demographics who will understand the value that planning consent offers, and that the details of the permission granted are 100% clear.
Selling a Property at Auction With Planning Permission: Key Takeaways
- Planning permission often increases interest among auction buyers, who are typically looking for properties with development potential where there is a strong likelihood they'll be able to add value.
- Property auctions often attract diverse buyers, from bidders to investors and developers, many of whom will actively look for properties that already have planning consent.
- Sellers must ensure they provide copies of all planning approvals and related documentation to help buyers understand exactly what has been approved and any limitations before the auction starts.
When it comes to the process of selling with planning permission, you’ll find that it’s the same process as outlined in our guide to selling a property at auction here.
Does Planning Permission Increase the Value of Auction Properties?
In many cases, yes, a property with planning permission is perceived as worth more by bidders. However, this will also depend on which permissions have been granted and other factors, such as the property’s location.
The benefit is that auction buyers already know a proposed redevelopment or modification has been approved by the local authority.
If they’d have been likely to submit a similar application, this means there are fewer risks of planning applications being rejected, and that new owners can get to work right away.
While planning permission can relate to lots of potential projects, some of the sought-after consents include permission for:
Single or double-story extensions
Loft conversions
Building a replacement home
Residential developments
Changing a commercial building into a residential home
While dependent on the value and feasibility of the development, more ambitious projects or those with the potential to have a significant impact on the property’s market value tend to attract the most interest.
Why Sell a Property With Planning Permission at Auction?
There are many contrasts between private treaty property sales and auctions, but one is the range of buyers who regularly bid at auctions. Auctions attract developers and investors, as well as private buyers who use them to find properties with potential.
Rather than deciding whether to bid solely based on the existing property, these buyers might look at:
Its development potential
Anticipated resale values
The costs of a build or renovation
Local demand for housing
The permissions and constraints granted
Generally, buyers who have already researched similar developments or completed comparable projects elsewhere see the biggest value in planning permission and will normally have a much better understanding of what the site might be worth once work is finished.
What Planning Permission Documents Do Sellers Need to Provide?
As an auction seller, we’d recommend providing comprehensive information to ensure buyers have all the necessary details about the planning permission in place. That includes:
The decision notice confirming permission
Copies of all approved plans
Planning reference numbers
Design and access statements, where relevant
Supporting surveys and reports
Building regulation approvals, again, where applicable
Transparency is key, particularly if the approved development plans are significant, and putting all of the planning documentation in the legal pack ensures buyers and their solicitors can review everything before the auction starts.
How Does the Type of Planning Permission Influence Property Sales Values?
Both outline and full planning permission can impact the price auction buyers are willing to pay, although full consent offers more certainty:
Outline Planning Permission | Full Planning Permission |
Confirms that the development proposed is acceptable in principle | Detailed approval granted for a specific scheme or project |
Further approval will be required | Work can proceed, subject to any conditions |
Greater flexibility to adjust plans | More assurance that the development will go ahead |
Appeals generally to more potential buyers experienced developers | Attracts a wide range of auction buyers |
Which Aspects Will Affect the Auction Sale Price of a Property With Planning Permission?
Having planning permission is a positive, although this doesn’t necessarily guarantee the property will sell for a higher-than-expected price, because there are many other factors that will also affect buyer appetites, including:
The property’s location
Current market conditions
Costs of construction
Local demand for this type of property
Planning permission conditions
Timescales for work to begin or conclude
It is up to buyers to decide what they believe the property is worth, based on the budgets associated with the planned work, and what they anticipate it will be worth once the project ends.
Clive Emson Auctioneers notes that ‘Properties with planning permission often generate a great deal of interest. That’s because buyers can see there is development potential, and don’t need to worry about whether the local planning office will approve proposed work.
The more information sellers provide, the better, because buyers can then assess the approved redevelopment properly and bid with confidence.’
Frequently Asked Questions
Can I Sell Land or a House at Auction With Planning Permission?
Yes, absolutely! Many auction properties are marketed specifically because they have planning permission or strong development potential, and this can make a property attractive to developers or buyers looking for projects where they can add value.
Read more: Selling land at auction
Is it Better to Obtain Planning Permission Before Selling?
This depends on your circumstances and reasons for selling. If you need a quick sale, it might not be worth delaying, especially if the planning application is in its early stages and likely to take time.
However, if you’re waiting for final approval and don’t mind the delay, there's potential to increase interest from auction buyers.
Should Auction Buyers Carry Out Their Own Planning Checks?
Of course, due diligence is always recommended for anyone buying at auction. Buyers can verify planning documentation and work with their solicitor to ensure they’re happy they have all the relevant information.
