In his 2023 Autumn Statement, the Chancellor announced that the Government will consult on creating a new Permitted Development Right, allowing one house to be turned into two flats, as long as the façade of the property isn’t altered.
That’s certainly good news for some. Investors who might be able to increase their returns by splitting properties up in this way would no longer need to submit a planning application, saving both time and money.
And enabling the creation of more affordable homes would also be good for renters and first-time buyers, who are currently struggling with a shortfall of suitable properties. Although do bear in mind, you will still need to meet Building Regulations and these can be complex when converting a house to flats.
However, without any opportunity for residents to voice their opinions and no sign-off required from local councils, there are concerns that neighbourhoods could change for the worse.
For example:
- Parking is already a problem in a lot of areas and could become an even bigger issue as more households are created
- A change in the culture could have a negative effect on the community – e.g. if many more younger people or students move into a neighbourhood currently populated by families and older residents
- If a lot of family-sized houses are converted into flats, it could have a negative impact on the value of existing residents’ homes
And although more affordable homes might be created, that could mean losing larger properties from the existing housing supply. According to Zoopla, there is already a shortfall of three-bedroom homes and high demand – not only from those upsizing, but also from first-time buyers in their 30s who need a family-sized home – so this is something that certainly needs to be considered.
When might this change come into force?
So far, it is only a proposal, and a consultation hasn’t been launched yet. But in its written Autumn Statement, the Government did state that it intended to consult early this year and implement the change sometime in 2024.
Meanwhile, we’re still waiting for an announcement on the outcome of the consultation that was held last summer on the Government’s other proposals for overhauling the planning system. The big question now is whether we’ll see any further developments before the General Election.
If you already own or are looking for a property that might be suitable for conversion and you’d like some advice, we’re always here to help. You can find the contact details for your local Your Move lettings team here.
The Your Move Content Marketing Team
