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Imagine transforming a century-old church into a modern living space or converting a rustic barn into a chic café. Such projects not only preserve history but also offer unique opportunities for substantial profits.
This blog provides valuable insights into real estate, planning permission, and renovation, guiding you through the complexities to maximise your returns. Investing in unusual buildings, such as churches, barns, and factories, can be exceptionally profitable due to their unique characteristics, strong market demand, cost-effectiveness, and favourable market trends.
Here’s a closer look at why investing in these properties can yield significant returns, supported by relevant facts, data and industry experts.
Unusual buildings often possess unique architectural features and historical significance that new constructions lack. These distinctive elements make the properties highly desirable in the real estate market.
According to Ellie Laws, a Chartered Town Planner at Planning by Design “historic homes attract a niche market willing to pay premium prices for unique architectural details and a sense of history”.
Too few houses being built for too long a time, coupled with the reliance of local planning authorities on meeting their housing need through non-description large national building companies, mean that buyers are crying out for characterful, different and exciting dwellings to live in. The move toward hybrid or home working has also inspired people who find themselves spending more time in their own homes. History, character and personality can be found in abundance in homes converted from other types of buildings, and for the adventurous, bringing a disused neglected building back into use as a home can be exciting and profitable.
A survey by the National Association of Realtors found that historic homes often sell for higher prices due to their character and charm.
There is a growing demand for distinctive properties, particularly in urban areas, where unique living spaces are scarce. Millennials and young professionals, in particular, are drawn to homes with character and history. A 2024 report by Deloitte found that 67% of millennials and Gen Zs prefer unique and personalised living experiences, driving the demand for unusual buildings.
With continued emphasis on “brownfield first” and a reluctance to release land for housing from the Green Belt, the opportunity to reuse former industrial buildings, old factories and derelict town centre sites is still growing. The fashion for industrial chic, tall windows and striped back internal brick walls, mean that for developers and individuals alike, the return on your investment when reusing buildings that have fallen into disuse makes sense, despite the potential costs involved.
With a focus on increasing urban density: and encouraging people to live where the facilities, jobs and sustainable transport are, there can often be opportunities to create flats and develop more intensely. Building one for you and one to sell, can sometimes lead to mortgage-free living! A feasibility appraisal from a chartered town planner can help you by interpreting the policy and guide you to the best use of the land considering all the constraints.
With careful planning and renovation, flipping unusual buildings can yield high returns on investment (ROI). The process of transforming these properties can significantly increase their market value.
According to the Remodeling Magazine’s Cost vs. Value report, specific renovations can offer an ROI of over 60%, with unique property flips often exceeding this average due to their distinct appeal. Converting a historic factory into loft apartments can increase the property value by 80%. Planning by Design’s recent projects has shown similar trends, with unique flips often surpassing standard renovation ROI by 15%.
When it comes to obtaining a unique property you plan to renovate and sell on, ensure it isn’t a listed building, which means it cannot be worked on unless it’s moved brick to brick.
National and local planning policy guide land use and designation in England. Local Plans often designate areas with historical significance as Conservation Areas. These heritage assets are protected under The Town and Country Planning (Conservation and Listed Buildings Act) 1990 These areas usually have tighter controls in terms of development.
Often Conservation Area Appraisals are compiled by local planning departments, that recognise the strengths and weaknesses of the Conservation Area. Understanding and interpreting this multilayered legislation, policy and guidance documents can be challenging, and is best done with the support of a planning professional. Planning By Design chartered planners can steer a project to maximise its potential whilst ensuring planning policy compliance.
Planning is a political issue. With 16 Housing Ministers in the last 14 years, each bringing their own priorities and focus to the government department, it is important to work with planning professionals to ensure that you have the most up-to-date information that relates to your chosen building. Local Plans produced by local authorities to control the development within their region are expected to be updated every 5 years. Since 2011, Neighbourhood planning has added another layer of control that has to be taken into consideration. Local Authority Housing Land supply can also impact the likelihood of a residential project being approved by planning. Researching, understanding and interpreting this in relation to your project is always best guided by a chartered planner.
Look for Unique Architecture: Buildings with unique architectural styles often attract higher resale values.
Historical Buildings: Properties with historical significance can be appealing, but ensure you understand the restrictions and costs associated with renovating historic properties.
Planning submissions and applications for Listed Building Consent from the local planning authority should be accompanied by a Heritage Impact Statement compiled by a planning professional who has experience working with heritage assets, to ensure the application has the best chance of approval. When taking on a heritage property for renovation and conversion, you will need to work closely with your local planning authority conservation officer to ensure the significance of the asset is preserved. Often expert tradespeople and original materials will be expected to be employed in the works, and detailed method statements that understand the historical significance and use of techniques to preserve these are required. Work to a listed building carried out without the correct consent can lead to unlimited fines or even criminal prosecution.
Environmental and Legal Considerations: Check for environmental restrictions and ensure the property has clear legal titles to avoid any legal disputes later.
Cost Estimation and Budgeting: Accurate cost estimation is crucial. Always budget for unexpected expenses and consult with contractors to get detailed renovation cost estimates.
Flipping unusual buildings can be a rewarding endeavour with the right knowledge and preparation. Understanding zoning laws, recognising the value of unique architecture, and meticulously planning renovations, can maximise your returns.
Take a look at the drawings and planning documents and visit our case study here. You can also explore our detailed interview with the client here showcasing how we successfully assisted a client in obtaining planning permission for a chapel conversion, ultimately leading to a profitable gain.
Ready to embark on your next project? Start by researching potential properties and consulting with planning experts here.
