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One of the most common claims scenarios, that we are faced with, occurs when local authorities are threatening enforcement action for past unauthorised works, including those which breach a planning condition. In these cases, the age and nature of the works often determine our strategy for dealing with the claim and how we achieve the best outcome for the policyholder. 

For example, if a council becomes aware of alterations that they consider to be in breach of an existing planning condition and threatens action, we have a couple of options to consider. We may choose to argue our legal position, or alternatively, coordinate remedial works to secure retrospective consent. Where a breach of planning conditions has existed for at least ten years, and is therefore immune from enforcement action, our aim will be to prove this to the local authority. But as this case study shows, even where this is the case, resolving the claim effectively can be a slower and more costly process than you might expect.

Changing rooms

In January 2021, we received an enquiry online for a Breach of Planning policy related to a residential property in Bedford. As part of the purchase process, the buyers, who had been tenants of the property since 2015, made their solicitor aware that the garage had been partially converted into living space by previous owners. This conversion breached a condition of the original planning consent, which stated that the garage was only to be used for the provision of off-street parking, to minimise on-street parking in the cul-de-sac. The buyers’ solicitor confirmed that the condition had been breached at least four years ago, and that the property had remained unaltered for at least 12 months. As there had been no relevant contact with the local authority or any attempt to regularise the breach, we issued cover for £340 with a policy limit of £245,000.

Contact from the council

Two and half years later, the policyholders received a letter from the council, seeking to visit the property and requesting information regarding “a garage being used as an annex, which may require planning permission.” This prompted the homeowner to contact our Claims team, who started to assess the claim and it quickly became clear that we had a number of points to address. Firstly, how had the council become aware of the works to the garage? The policyholders thought the garage conversion had been reported by a frustrated neighbour, once their own application had been rejected. As part of our initial investigations, we checked other planning applications and established that one of the neighbouring properties had indeed had their application to convert their garage refused. 

However, we also uncovered another complication, when it was revealed that the policyholder had carried out further work to the garage after we’d issued the policy. Had these changes caused the local authority to act? Our claims team looked at the recent works in detail, which had completed the conversion of the garage space into a full living area. Crucially, these works included removing the garage door, bricking it up and installing windows. The council had subsequently issued a Building Regulations certificate for the 'full' conversion, and as so much time had passed, it seemed unlikely that this had triggered the breach of planning enforcement action. Our team were therefore happy to handle the claim.

Proof positive

Encouragingly, one major part of the claim seemed straightforward enough to defend. We knew that the policyholder had been living in the property for eight years, and that they had been told when they moved in that the garage had been partially converted into living space by a previous owner. The team were confident that we could successfully prove that the breach of planning had occurred more than 10 years earlier and was therefore immune from any enforcement action. 

Building a case

The next step was to appoint a planning consultant to prepare an application for a Lawful Development Certificate, and gather photos of the room in use provided by the policyholder. The team also uncovered the floorplan of the property from the 2015 online sales listing, which showed the living and storage space in place of the garage. Having obtained a detailed statement from the previous owner, which confirmed their purchase of the property in 2011 with the space already partially converted, all the evidence was incorporated into the Planning Statement and submitted to the council in December 2023.

Despite having a strong case, the further works undertaken in 2022 remained a concern, as the team were wary that they could impact our ability to defend the partial conversion. However, the planning consultant was confident that this would not be the case. After some clarification on a few points over the following weeks, the policyholder was eventually informed in March 2024 that their application was successful and the council issued the Lawful Development Certificate (LDC) for the earlier, partial conversion works – excellent news for the policyholder. The certificate did not include the more recent additional works that altered the layout and exterior of the garage, and they were not covered by our policy. However, the policyholder was happy to deal with these separately, with the advice of the planning consultant. The total cost covered under the policy to successfully resolve the claim was just under £7,000, which was largely made up of professional advice and fees to prepare the LDC application.

A wealth of experience

As this case study demonstrates, while the period for enforcement action for all breaches of control has recently increased from four to 10 years, local authorities can still take action, irrespective of the age of the works and breach of planning control - particularly for more significant breaches, or non-compliance with planning conditions. Successfully resolving a claim in these circumstances requires choosing the correct strategy according to the age and nature of the breach, along with careful management and coordinating with various parties to avoid matters escalating. With a wealth of experience and expertise to draw on, our team is well-equipped to assess the individual circumstances around any claim. Supporting the policyholder throughout what is often a stressful process, and ensuring that a satisfactory outcome is reached for all parties as quickly as possible, demonstrates our continued focus on excellent service from quotation to claims payment.