The United Kingdom’s (UK) National Planning Policy Framework is expected to be a boon for residential real estate located along the islands coasts, according to research from Country Homesearch. A home with a view sells for considerable premium along the UK’s shores, and a clause in the new policy that calls for the preservation of continuous route around the coast will ensure those properties remain limited. The policy is also expected to boost the value of new homes by streamlining the permitting and construction process, which will help fuel the economy and subsequently help prices. For more on this continue reading the following article from Property Wire.
The new National Planning Policy Framework announced in the UK will boost the desirability of coastal properties, it is claimed.
According to Country Homesearch homes on the coast will become hot properties as the document, which takes effect from today (Tuesday 27 March), has confirmed a commitment to protection of the UK’s coastline.
The document states that development should not curtail a continuous signed and managed route around the coast, and this will serve to further limit the supply of coastal properties being built in the UK, the company believes.
With such restrictions it estimates that prices of coastal property will increase, possible commanding a 20 to 30% premium compared to inland properties.
‘With the staycation again a key holiday trend this year the returns of a holiday let by the sea are set for big increases in 2012, making the limited supply of coastal properties a potential gold mine,’ said David Hindom, director of County Homesearch Devon.
His colleague Carol Peett, director of County Homesearch West Wales, pointed out that recently in Penally the sweeping views over to the Devon Coast lead to a £695,000 asking price for a hillside four bed family home, while a nearby equivalent home lacking the views is marketed at £415,000.
‘This premium is repeated throughout Pembrokeshire, and as the government closes off coastline from development these views are protected, ensuring the price gap will only increase in future,’ she explained.
New homes are also set to get a boost. ‘The NPPF lays the foundations for a house building and economic recovery, unravelling the complex planning law which has resulted in a shortage of homes alongside population growth. Developers only build in areas where there is a demand for new homes; creating jobs, improving local infrastructure and helping to generate increased local investment which in turn boosts local house prices,’ said Steven Lees, director at SmartNewHomes.
‘The Government is right to prioritise the development of brown field land and house builders are well versed in creating sustainable developments out of these sites as they have done for many years, with 75% of new home schemes already being built
on previously developed land. If 250,000 homes were built every year for 25 years, only 1% of England’s land mass would be used,’ he explained.
‘Savvy local authorities will continue to seek opportunities to identify disused sites for development, generating income for local people through the New Homes Bonus,’ he added.
This article was republished with permission from Property Wire.