How landlords can make use of PDR to boost earnings
In 2021, legislation introduced a new ‘Permitted Development Right’ (PDR).
The new PDR has opened a range of new opportunities for investors who want to convert and refurbish a property, either to let it out or sell it for profit. Simply achieving planning permission through PDR is an opportunity for profit, reportedly offering a value increase of up to 30%. *
Permitted development rights are rights to make certain changes to a building without the need to apply for planning permission. They derive from general planning permission granted by Parliament rather than the local planning authority. Unlike applying for planning permission, which can be an uncertain and lengthy process, permitted development rights can provide a straightforward right to development, if predefined criteria are met. This means that approval can often be achieved in less than two months.
PDR offers the potential for hundreds of Class E premises to be given approval for a change of use into Class C3 and Class C4 dwelling-houses and HMOs. Class E includes commercial and service-use premises in town centres, such as offices, shops, cafés, restaurants, surgeries, nurseries, and indoor gyms.
To qualify for PDR, the property must have been in use under one of the use classes captured by Class E, for at least two years prior to the submission of the approval application. It must also have been vacant for three months.
If you are thinking of expanding your property portfolio, contact us for a no-obligation valuation.
*Property Reporter
This article was originally published by BriefYourMarket and is reproduced here with their permission.
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