Selling a Property With a Planning Issue, How Disputes and Enforcement Notices Affect a Sale

Why Planning Issues Can Block a Sale

Planning issues are among the most common legal complications in residential property transactions in England and Wales. They range from relatively minor matters (a garden shed built without permitted development compliance) to serious ones (an enforcement notice requiring demolition of an extension).

What makes planning issues particularly problematic in a sale context is the combination of:

1. **Mandatory disclosure obligations**, sellers must disclose known planning issues to buyers

2. **Lender sensitivity**, mortgage lenders will often decline to lend on properties with unresolved enforcement notices

3. **Buyer risk aversion**, buyers are understandably cautious about inheriting a planning problem

The good news is that most planning issues in residential property transactions are resolvable, either through regularisation or through planning indemnity insurance.

The TA6 Disclosure Obligation

When selling a property in England and Wales, the seller completes a **TA6 Property Information Form** as part of the conveyancing pack. Section 7 of the TA6 specifically asks about planning matters, including:

• Whether any planning permissions, building regulations approvals, or completion certificates relate to the property
• Whether there are any outstanding notices from a local authority, including enforcement notices, planning contravention notices, or section 215 notices
• Whether any alterations, extensions, or outbuildings have been erected without planning permission or building regulations approval

Answering these questions inaccurately or incompletely is a misrepresentation, which can expose the seller to legal liability after completion, including claims for damages if the buyer suffers financial loss as a result of the undisclosed issue.

If you are unsure whether something requires disclosure, err on the side of disclosure and seek legal advice.

Planning Enforcement Notices

A **planning enforcement notice** is issued by the local planning authority (LPA) when it considers that a breach of planning control has occurred and that it is expedient to take action. The notice specifies:

• What breach has occurred
• What steps must be taken to remedy it (which may include demolition, removal, or restoration)
• The time period within which steps must be taken

An enforcement notice registered against a property is a serious matter. It will appear in the Local Authority Search carried out by the buyer's solicitor and will almost certainly cause the buyer's mortgage lender to decline the application.

Appealing an Enforcement Notice

An enforcement notice can be appealed to the **Planning Inspectorate** within the time limit specified in the notice (typically 28 days). An appeal automatically suspends the effect of the notice while it is being considered. However, this is not a solution to the problem, it is a temporary pause.

Complying With an Enforcement Notice

The most definitive resolution is to comply, take the required remediation steps, obtain confirmation from the LPA that you have done so, and then sell the property free of the encumbrance.

Where this is not possible (for example, because demolishing an extension would significantly reduce the property's value), other options exist.

Planning Contravention Notices

A **planning contravention notice (PCN)** is a preliminary investigative tool used by LPAs to gather information about a potential breach of planning control. It is not itself an enforcement notice, it does not require any action, but it signals that the LPA is investigating.

Receiving a PCN creates an obligation to respond accurately within 21 days. Failure to respond, or providing false information, is a criminal offence.

A PCN must be disclosed on the TA6. Buyers and their solicitors will note its existence and may seek reassurance about the outcome of any LPA investigation.

Section 215 Notices

A **section 215 notice** is issued by a local authority requiring the owner of land to take steps to remedy the condition of their land or buildings where the amenity of the area is adversely affected. These are less common in residential transactions but do arise and must be disclosed.

Unapproved Extensions and Alterations, the Limitation Period Consideration

Not all planning issues involve formal enforcement notices. Many properties are sold with extensions or alterations that were carried out without the required planning permission, where no enforcement action has ever been taken.

In England and Wales, there are **limitation periods** for planning enforcement:

Once the limitation period has expired, the LPA loses the power to take enforcement action. A certificate of **lawful development** can be applied for to formally establish that the development has become lawful.

**Note:** The Levelling-up and Regeneration Act 2023 extended the general limitation period for operational development to 10 years for breaches occurring after April 2024. For breaches that occurred before that date, the 4-year rule still applies, but always seek legal advice on the specific facts.

Planning Indemnity Insurance

Where a planning issue cannot be easily regularised, **planning indemnity insurance** is the most common practical solution. This is a one-off insurance policy that protects the buyer (and their lender) against financial loss arising from the local authority taking enforcement action.

What It Covers

Planning indemnity insurance typically covers:

• The cost of complying with any enforcement action (e.g. demolition costs)
• Loss in property value resulting from enforcement action
• Legal costs of defending against enforcement action

What It Does Not Cover

Planning indemnity insurance does not retrospectively make the development lawful. It is a financial backstop, not a planning permission. The local authority retains its power to take enforcement action; the insurance pays for the consequences if it does.

Cost

Premiums are usually modest in the context of a property transaction, typically **£200–£800** for a standard residential extension, paid once, for the life of the policy.

Application Process

Planning indemnity insurance is arranged by your solicitor, typically with a specialist legal indemnity insurer. The policy is obtained based on written details of the breach, its age, and the current state of knowledge of the local authority.

**Critical:** Do not contact the local planning authority about the issue before taking out insurance. Bringing the matter to the LPA's attention invalidates the insurance.

How Buyers' Mortgage Lenders React

Most high street mortgage lenders will:

• Decline to lend where an active enforcement notice remains outstanding
• Accept a planning indemnity insurance policy as a sufficient remedy for historic, low-risk breaches
• Require the breach to have existed for a minimum period (often four years for operational development) before accepting insurance

Your solicitor and the buyer's solicitor will typically agree the appropriate insurance policy between them. The seller usually pays the premium as part of the conveyancing process.

A Practical Decision Framework

Property Passport UK

Property Passport UK displays planning application history sourced from local authority data for indexed properties. Reviewing this before marketing helps you identify whether any historic applications or decisions are recorded, and gives you and your solicitor a starting point for assessing whether indemnity insurance is appropriate. You can search any property by postcode at propertypassport.uk.