Buy, Improve, Extend? What The Hell’s The Hold Up?

For years, the well-trodden route for many homeowners was simple. Buy a property with potential, improve it, maybe extend it, and watch the value rise. It was a way to get the home you wanted without having to move up the property ladder in one giant leap.

Now that pathway is looking a lot bumpier. Renovators are finding themselves up against stricter planning rules, rising costs and a surprising amount of local resistance. The pushback is not always obvious at the start, yet once it arrives it can stop even the best-prepared project in its tracks.

Part of the challenge comes from planning departments tightening up on what is allowed, especially in conservation areas or streets with a strong, uniform style. Councils are under pressure to preserve character, avoid overdevelopment and protect green spaces. That means they are more willing to say no to larger extensions or designs they feel do not fit the area.

It is not just the scope of projects that is under scrutiny. Even modest changes, such as loft conversions or rear extensions, can face tough questioning from planning officers. This is especially true if there are concerns about the impact on neighbours or the local street scene. It is creating an environment where what was once a straightforward planning application now requires more detailed justification, drawings and, in some cases, specialist reports.

Then there is the financial reality. Materials have risen sharply in price, from timber and steel to insulation and fittings. Skilled tradespeople are in high demand, which drives up labour costs and can lead to long waits for work to begin. Many renovators also find that once work starts, unexpected issues appear, such as hidden damp or outdated wiring, which push budgets even further.

Sustainability is another factor reshaping the renovation landscape. Energy efficiency standards are becoming stricter, meaning homeowners often need to factor in better insulation, low-carbon materials and greener heating systems. These changes are positive in terms of reducing energy use and cutting emissions, yet they can add complexity to a project. Specialist contractors may be needed, and the materials themselves can cost more than standard alternatives.

And sometimes the opposition is much closer to home. Neighbours have the right to raise concerns during the planning process and many are doing exactly that. Common worries include loss of privacy, reduced sunlight, increased traffic or noise during construction. While some objections can be resolved through design changes or compromises, others turn into formal planning disputes that can delay work for months.

Renovating still has huge potential. It can transform a tired house into a perfect home and can often be more cost-effective than moving, especially when factoring in stamp duty, legal fees and removal costs. Yet the climate has shifted. Homeowners now need to plan further ahead, budget with a generous safety margin and be prepared for a longer, more involved process.

Good preparation is key. Speaking to planning officers before submitting an application can help identify potential stumbling blocks early on. Getting clear, itemised quotes from contractors, with contingency allowances, can reduce the risk of nasty surprises. Keeping neighbours informed from the start can also make a big difference to how a project is received.

For property investors, this shift increases project risk and can lengthen the timeline for a return on investment. Buying properties for refurbishment or value-add extensions now requires more careful analysis. Factoring in longer approval periods, potential objections, and the possibility of redesigns is essential. Some may choose to focus on properties that already have permitted development rights in place.

For HMO owners and developers, tougher planning scrutiny and local opposition can make conversions harder to achieve. Councils are wary of over-concentration in certain areas, and neighbour objections can carry more weight. Compliance with building regulations, soundproofing, and energy efficiency requirements will become even more critical.

For property lawyers, these changes highlight the value of early involvement. Advising clients on planning constraints, restrictive covenants, and neighbour consultations before purchase can save costly delays later. Disputes over planning refusals or conditions are likely to become more frequent, and sustainability compliance will be an increasingly important area of legal guidance.

On Thursday 14th August at 10am, we will be talking about all this on Spilling The Proper-Tea. Hosted by Gareth Wax, and joined by Hamish McLay, Chris Gilsenan and Juliet Baboolal, we will have an open and grounded discussion on why this pushback is happening, what it means for buyers, sellers, investors and landlords, and how to navigate the new reality.

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