Buying Property at Auction: Planning Permissions and Building Regulations

Buying a property at auction can be an exciting way to secure a bargain, but it also comes with potential risks—especially when it comes to planning permissions and building regulations. Many auction properties have been repossessed, abandoned, or altered without proper approvals. Failing to check the legal and regulatory status of a property before bidding can lead to costly fines, delays, or even the need to undo previous work.

In this guide, we'll explore what auction buyers need to know about planning permissions, building regulations, and how to avoid legal pitfalls when investing in a property.

Understanding Planning Permission

Planning permission is required for most structural changes or major developments on a property. If a previous owner has extended, converted, or altered a property without proper approvals, you could inherit serious legal and financial risks.

When Do You Need Planning Permission?

You will typically need planning permission if:

• You are changing the use of the property (e.g., converting a residential home into flats or a commercial space).
• You are making significant alterations, such as adding an extension, loft conversion, or outbuildings.
• The property is in a conservation area, is listed, or has Article 4 Directions that restrict permitted development rights.

How to Check for Planning Permissions

Before bidding on an auction property, check whether any modifications have received proper planning consent:

• Local Authority Planning Portal: Most local councils have an online database where you can check past applications.
• Legal Pack: Some planning approvals may be included in the auction legal pack.
• Solicitor or Planning Consultant: A professional can help interpret planning restrictions and past approvals.

If unauthorized works have been carried out, you may need to apply for retrospective planning permission, which isn’t always granted. In worst-case scenarios, the council could order you to revert the property back to its original condition.

Understanding Building Regulations

Even if planning permission is not required, building regulations approval is necessary for most construction work. These regulations ensure that buildings meet safety, structural, and environmental standards.

What Falls Under Building Regulations?

Building regulations apply to:

• Electrical rewiring
• Structural alterations (e.g., knocking down walls, extensions, loft conversions)
• Plumbing and drainage changes
• Insulation and energy efficiency improvements

Even minor renovations, such as replacing windows and doors, might require compliance with building regulations.

How to Verify Building Regulation Compliance

To confirm that an auction property complies with building regulations:

• Check for Building Control Certificates: These confirm that work has been inspected and approved.
• Contact the Local Building Control Office: They can verify whether approval was granted for previous work.
• Look for an Indemnity Insurance Policy: If work was carried out without approval, the seller might offer indemnity insurance, but this doesn’t guarantee compliance.

If a property fails to meet building regulations, you may need to pay for remedial work or risk fines and legal action.

Buying Auction Properties Without Proper Approvals

Many auction properties come with planning or building regulation issues, but that doesn’t necessarily mean they’re a bad investment. However, it’s crucial to factor in the risks and potential costs of rectifying these issues.

How to Handle Properties with No Planning Permission

If you’re considering an auction property that has undergone modifications without planning consent, you have a few options:

• Apply for Retrospective Planning Permission: This can be risky, as permission may be denied.
• Seek a Certificate of Lawfulness: If the changes were made more than four years ago (or ten years for a change of use), you might be able to get a certificate confirming the work is lawful.
• Be Prepared for Enforcement Action: If the local authority rejects retrospective permission, you may be forced to reverse the alterations.

How to Handle Properties Without Building Regulation Approval

If a property lacks building regulation approval, you might need to:

• Obtain Regularisation Certificates: These certify that past work meets current standards (this often requires inspections and modifications).
• Negotiate a Price Reduction: If work was done without approval, you may be able to negotiate a lower purchase price to cover potential remediation costs.
• Take Out Indemnity Insurance: This can protect you financially against enforcement action, but it doesn’t resolve compliance issues.

Conclusion

Planning permissions and building regulations are critical considerations when buying a property at auction. Failure to check these aspects can lead to unexpected costs, legal disputes, or the inability to develop the property as intended. Before bidding, always conduct thorough research, consult with professionals, and ensure the property complies with all necessary regulations.

By doing your due diligence, you can invest confidently and avoid costly surprises. If you need expert guidance on auction finance or legal compliance, get in touch with our team today!