Are Listed Buildings A Good Investment
- Posted by:
- Admin
- Tags:
- Buildings, Investment, Costs, Insurance, Repairs
- Posted date:
- 29-11-2022
Are listed buildings a good investment? Find out the pros and cons of owning a listed building. Is buying a historic building right for you?
Is a Listed Building a Good Investment?
The overall costs to buy, renovate, maintain and restore listed buildings are enormous and even more so due to how challenging it is to carry out this work.
There are numerous strict controls placed on the materials used and building work completed on listed properties, should plans even obtain approval. Refurbishment, repairs and materials are far more costly than other modern buildings across the country.
Costs of work performed on these types of structures may cost more than double what it may in other non-listed households or buildings. Whilst a listed building may be a dream residence; however, the looming financial burdens will always exist.
Unless you have enough money to purchase the protected building and maintain it for the future, a listed building isn't the wisest investment for the average person.
The Pros of Owning a Listed Building
Owning a listed building on the statutory list has several advantages, and there are various reasons why it may be an attractive option:
Listed buildings in England provide owners with a unique lifestyle, as they provide their own special and unique characteristics of particular importance that you wouldn't have if you purchased an unlisted home or property. Some listed buildings can include Tudor farmhouses, castles or grand Georgian households, all of which can offer a brand-new living experience that you've never had before.
Those living among or inside listed buildings usually say they feel at one with the country's history and period charm or the protected natural world in a way that cannot be replicated in most homes. It gives home or property owners a chance to admire and discover the heritage and history of the nation and assist in actively preserving it for the future with regular and necessary maintenance.
Listed buildings appreciate faster in value than various other properties, even those in the same area. Listed property supply is limited, and their rarity makes the prices increase. The ever-increasing costs mean that listed buildings are a fantastic long-term investment.
Listed buildings are typically in town or country locations that are tourist spots that are well-sought-after areas to live in.
The Cons of Owning a Listed Building
Owning or investing in listed buildings involves numerous disadvantages that you should consider.
These cons include the following:
Listed buildings have the most restrictions, meaning you cannot make any significant changes to their original condition or appearance. It can be impossible or highly challenging to extend, develop or renovate the structure. You'll need to obtain some LBC (Listed Building Consent) to begin making changes to such properties, and this permission may not even be granted.
Listed buildings need consent to carry out extensions that alter the building's external or internal layouts appearance, replacing key features like windows, doors or walls and removing or altering staircases or fireplaces. You may also need permission to change the external colour scheme and any work on outbuildings, the outer land or gardens, like adding fountains, solar panels, satellite dishes, or others. You mustn't demolish any part of a listed building.
LBC (Listed Building Consent) must be applied for through your local planning authority, and it can be a long process. Conservation officers at the council should be able to advise individuals on which listed building adaptions require consent and whether it is likely to be granted. Historic England and Environment Scotland, Cadw and numerous well-known organisations that centre their knowledge around architecture and historical sites will also be able to provide such information and guidance.
Any unauthorised work on listed buildings is considered a criminal offence and could lead to imprisonment that lasts approximately two years or a limited fine.
There are numerous legal responsibilities involved with owning a listed building to conserve and maintain it. Local authorities and council services can provide repairs notices if they perceive your building to be neglected and in dire need of repair, and this regulation is noted under Section 115 of the Town and Country Planning Act 1971. Authorities can make compulsory purchases for such buildings in extreme cases of repair neglect.
Many buildings under the various listed building grades require a lot of repairs and maintenance, often due to how old and the nature of the techniques used or the lack of durable materials utilised to build them. Maintenance for listed buildings is guaranteed to be more expensive; extensions and renovation, should they be allowed, will also be costly. These building repairs need specialist building materials and skills to perform and complete these jobs.
It can take a lot of work to obtain insurance for listed houses or buildings. Any specialist insurance acquired is typically much more expensive due to how costly it is to provide repairs or maintenance for these properties. We recommend seeking advice from specialist brokers or insurers to gain information on the insurance complications involved.
Listed buildings aren't typically built or suited for modern living conditions. Many have oddly-shaped rooms that are small, those with lofty rooms or have low ceilings. The sheer scale of some listed buildings often means they have poor-energy efficiency and little insulation, making them difficult to live in during the winter when it's cold and expensive to heat due to their size. Correcting such heat-loss issues will also be a complex and expensive task.
Listed Buildings Categories
There are a total of three categories encompassing the listed buildings that you should be aware of on the national register:
Grade I Listed:- These buildings or properties are of exceptional interest, which only applies to some of the best-known buildings across the UK, for example, the House of Commons. Such properties are in small numbers.
Grade II* Listed:- Such building acquires more than particular interest, as it is typically of historic interest and special architectural significance throughout the UK. You may find these types of buildings on the national heritage list.
Grade II Listed:- This kind of building is one of special interest, and approximately 93% of these listed buildings fall under this category.
Many listed buildings under these categories are historic properties with architectural significance; however, a few modern structures have been granted status as listed buildings. Some of these modern examples include the Royal Festival Hall, Finsbury Health Centre, and Oakwood Tube Station, to name a few. Around six structures in England have been given Grade I status, even though they were built in the sixties; these include the British Library in King's Cross, the Humber Bridge and the Willis Building that you can find in Ipswich.
Things to Consider When Investing in a Listed Building
To begin, one of the aspects you must consider is the buildings' rarity value. A select few buildings throughout the country are listed under specific categories.
Those that wish to invest in Grade I buildings may experience more difficulty acquiring them as they have much broader name recognition.
Such buildings within the Grade I category are few and far between, and a large percentage of those that seek these types of assets are those with enough inclination and money.
Investing in a listed building is much like investing in amounts of gold; they'll ultimately accumulate more value than any other property on the market.
When against all other buildings and market fluctuations, listed buildings possess their fixed value, and any adaption to the price will be an increase. It is typically unheard of for listed buildings in the country to decrease their monetary value.
Whilst purchasing a listed building often means you cannot make modifications, especially the required planning permission and building control, that doesn't mean you cannot make slight alterations to improve its overall value.
You can fix damp issues, make repairs and carry out numerous works to improve your property's condition. For those wishing to perform or hire a professional to carry out maintenance on a listed building, there are numerous grants available, and usually, the costs are covered.
Investing isn't an easy excursion; there are plenty of challenges along the way, and the costs to carry out maintenance, renovations or significant repairs will be high regardless, especially when buying a listed building.
Before making a big commitment, we recommend contacting a local quality surveyor to conduct an extensive survey on the area to assess the extent of work that you or professionals must complete for upkeep. In doing so, you'll have a far more accurate estimate of how much the maintenance repairs will set you back monetarily.
Are you looking for homebuyer building surveys in Westminster and London? Discuss your requirements with our surveyors.