Happily, the answer is no, it won’t. Our planning policies remain available and unaltered, and the same is true for our premiums.
What has changed with the Levelling Up Act?
Prior to 25 April 2024, under the Town and Country Planning Act (1990), a four-year enforcement period applied to properties that lacked either the required planning permission for a change of use to a single residential property, or for any unauthorised building works. Once the four-year period had elapsed, local authorities could not take action, via an enforcement notice, for any breach. This was out of step with how other breaches of planning control were treated, such as failing to comply with planning conditions, or those relating to non-residential properties, which have always been enforceable for a ten-year period.
The introduction of the Levelling Up and Regeneration Act 2023 essentially addressed this inconsistency for all properties in England, and as of 25 April 2024 the ten-year enforcement period now applies to all new breaches of planning control. Importantly, the new act does allow for a period of transition. In cases where past unauthorised works, or a change of use to a single residential property, were substantially completed before the 25 April 2024 deadline, the previous four-year enforcement period rule will continue to apply.
How does it affect the cover we provide?
Essentially, from an insurance perspective, very little has changed that impacts how we currently handle enquiries for planning issues, because of the transition period that applies to established works completed before 25 April 2024. Under the new ten-year enforcement period, local authorities do have more time to act, but this is unlikely to have an immediate impact, as it will largely affect future transactions where unauthorised works were completed more recently.
Regardless of the changes brought in by the recent legislation, we’re happy to continue to provide cover for works at least six months old under our lack of planning consent policies in the same way as we always have. We know from our claims experience that even when the works are old enough to be immune from enforcement action, councils may still threaten legal action, which can lead to a claim being made against the policy. For now, we will continue to monitor the impact of the changes, reviewing our underwriting approach accordingly, particularly with the end of the transition period in mind, at the end of April 2028.
So, when you’re next dealing with a transaction where the necessary planning consents for past works are not available, call our expert underwriters on 01603 761515, email enquiries@isisconveyancing.co.uk, or sign in to ICON to see our range of single and combined products.