intouch

In an earlier edition of intouch, we examined the new Building Safety Act 2022 and explored whether it had impacted our Building Regulations policies (it hasn’t!). We’ve received a similar set of questions relating to the Levelling Up and Regeneration Act 2023 and its potential ramifications on the availability, price and cover provided under our suite of lack of planning consent policies.

Once again, we are happy to confirm that nothing has changed from our perspective. Our planning policies remain available and unaltered, and the same is true for our premiums too.

What are the changes?

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 allowing a change of use to a single residential property, or for any unauthorised building works that had taken place in the past. Once the four-year period 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 has addressed this inconsistency for all properties in England, and from 25 April 2024, the ten-year enforcement period now applies to all new breaches of planning control. Importantly, the new act allows 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 for past works?

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 policies for breach of planning or lack of consent in the same way as we always have. As the case study featured in this issue demonstrates, even when the works are old enough to be immune from enforcement action, councils may still threaten legal action, leading to a claim being made under the policy. For now, we will continue to monitor the ramifications of the legal changes that have come into effect, reviewing our underwriting approach accordingly, particularly with the end of the transition period, in April 2028, in mind.

So, when you’re next dealing with a transaction where the necessary planning consents for past works are not available, call our specialist underwriters on 01603 617617, email enquiries@cli.co.uk, or sign into Elite.