Andy Thompson writes for Estates Gazette about an agri-resi conversion opportunity for landowners

In an article for Estates Gazette Andy Thompson, Director and Agency and Auctions expert at BTG Eddisons, has highlighted a significant opportunity for agricultural landlords to convert farm buildings on their property, through Permitted Development Rights.

Writing about this in his article for the industry title, Andy also pointed to data (below) demonstrating that landlords are already taking advantage and that more could follow.

Andy writes:

“In the first quarter of this year there was a 31% year-on-year increase in agricultural buildings moving towards conversion. This was either due to prior approval not being required or approval being given.”

“Overall, the percentage of applications progressing towards conversion has sat above 60% since 2015, and the number of applications gaining approval in the first quarter of 2025 (273) is the highest it has been since the third quarter of 2019 (297). Both of these figures should give anyone looking at this route to additional revenue hope that going through the application process has a high likelihood of bearing fruit.”

Delivering his thoughts on the market, Andy talks through the process that landlords looking to use Permitted Development Rights could face. He also discusses a number of factors including consumer demand for housing and rural living, infrastructure challenges and lender confidence in the property sector.

Andy writes:

“The Funding and Insurance arm of BTG, has seen a number of buildings being purchased, or finance approved to acquire them even without planning permission having been approved. This demonstrates that confidence that planning permission will be granted is rising.”

“This confidence has also been felt in the auction room, where lenders that often provide bridging finance to buy auctioned buildings are becoming more willing to lend and developers more confident to borrow.”

Weighing all of these options up it seems that there is an opportunity for landlords and investors to explore avenues for converting agricultural buildings, whether they are already owned, or they can be bought through auction. This can not only help meet demand from consumers for housing but also offer landowners a route to build or increase revenue streams at a time when the agricultural industry is finding these are much needed.