Yesterday I blogged my summary of the Conservatives’ Planning Green Paper.
Today I thought it would be useful to look at some examples of how their proposals might affect us Property People
Looking purely from an Investment Opportunity Angle:-
This 9 bedroom ‘Edwardian Gentlemen’s Residence’ has just sold, offers over £399k with potential to build another house in the garden subject to Planning Permission.
.Under current Planning Policies and the implementation of these policies by the Local Planning Authority where this house is situated, it is likely that Planning Permission will be approved for a building plot in the garden which could be sold for approximately £150k. Conversion of the main house to flats is also possible.
Under the Conservative’s proposals Planning Permission will almost certainly be refused both for the building plot and conversion of main house to flats.
Assuming the Conservative’s win the election and their Planning Green Paper is accepted in both houses of Parliament, was this a good or bad investment?
You might think it’s a bad investment. However, the Conservatives propose that any building can be used for educational purposes under Permitted Development Rights and no Planning Permission required – would this not make a profitable Language School? - 5 minutes walk to the local train station.
Foreign students apparently pay up to £30 per hour for tuition and I guess that a building like this may accommodate 50-100 students so it would not be unrealistic to assume that you could turnover in excess of £20,000 per day when occupied.
But how does this fit with the Conservative’s pledge to ensure local people have a say in how land and buildings are used in their neighbourhoods?