Residential amalgamations – Tips and Traps for Developers
Tips and Traps for Developers 2025 #5
Do you need planning permission to amalgamate residential properties?
Planning permission is not required for internal alterations. This has led many to conclude planning permission is therefore not required for the amalgamation of residential properties which involve no external alterations. Whilst that may well have been the case in previous years, those seeking to amalgamate properties now must proceed with caution; increasing housing shortages has meant that amalgamation is capable, in certain areas, of being a material change of use for which planning permission is required.
In Central London, the proliferation of amalgamations has resulted in the detrimental loss of smaller flats. This has led Boroughs, supported by case law and planning appeal decisions, to introduce planning policies on amalgamation.
This means it has become increasingly more difficult, and in many instances impossible, to achieve the size of the residential amalgamations we have seen over the last decade. The result being an inevitable increase in price for large, often luxury flats, which would not be granted planning permission today and therefore are in limited supply.
Planning enforcement time period
Up until the 25 April 2024, the planning enforcement time period for unlawful amalgamations was 4 years. However, from this date, the enforcement period for all breaches of planning control has been increased to 10 years. In cases where unauthorised works have been deliberately concealed, there is no time limit. Planning Appeal decisions have confirmed that in unauthorised amalgamation cases, failure to update the Council Tax and utilities position of the properties does not, on its own, meet the threshold for deliberate concealment.
Proceeds of Crime
In cases where a Local Planning Authority (LPA) were to issue an enforcement notice for unauthorised development, failure to comply with the requirements of the notice within the specified time, can result in an unlimited fine. In determining the amount of any fine, the Court is to have regard to any financial benefit which has accrued, or appears likely to accrue, in consequence of the offence.
If an LPA is successful in a conviction for failure to comply with an enforcement notice, they can also apply for a Confiscation Order under the Proceeds of Crime Act 2002. This is to recover the financial benefit obtained through the unauthorised development. Given the value of a large floorplate flats can be higher than two smaller flats of the same size, enforcement of this type is a risk that those who have amalgamated properties, or are considering doing so without planning permission, should be aware of.
| Tips |
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1. If you are considering amalgamation, the first port of call will be the LPA’s Local Plan to find out whether this is something they are seeking to regulate. |
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2. It is a good idea to ensure there are records of exactly when the amalgamation was completed (dated stamped photos, invoices for works etc.) so that , if required, this date can be evidenced in future. |
| 3. For those looking to sell properties which have been amalgamated in areas where planning permission was not needed at the time of amalgamation, but where policies have since been introduced, a certificate of lawfulness can be applied for from the LPA to confirm the lawfulness of the planning position. |
| Traps |
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1. Do not think because the works are only internal that planning permission is not required. This needs to be checked with each LPA. |
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2. Do not think that an unauthorised amalgamation is lawful after 4 years, if the works were not substantially complete by 25 April 2024 – from this date, the enforcement time period is now 10 years. |
Please don’t hesitate to contact Alice Gordon-Finlayson (Senior Associate) in our Planning Team for advice on amalgamation or other planning matters.
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