This week will talk about our experience in learning the most and best beneficial projects that can give a roof over the head to a lot of people.
I will keep it very simple without going into too much detail, allowing anyone to read and easily reach the end of this article.
Before starting tho I would like to say thanks to the invaluable insights and expertise provided by propertyCEO, along with the utilization of the innovative website Nimbus Maps.
I have had the honor of delving into the tipping points and gaining valuable knowledge about the conversion process from commercial to residential properties thanks to the Fast Track course they offered to me. With their guidance and their expertise we were able to explore and understand which deal is best for the current needs.
In this blog post, we will explore how this collaboration, combined with blockchain technology, can revolutionize the conversation surrounding commercial to residential conversions and pave the way for a more efficient and secure real estate industry.
Blockchain technology has emerged as a game-changer in various industries, and the real estate sector is no exception. Another area where blockchain shows the tremendous potential is in the conversation surrounding commercial to residential conversions under permitted development rights (PDR).
Yes, you might be thinking: How can Blockchain simplify this process?
In this article, we will examine how Blockchain can make our life easier because we will talk about potential benefits!
Let's start with: it's not easy and it won't be easy!
What is PDR?
Permitted Development Rights (PDR) in the United Kingdom is a set of planning regulations that allow certain types of development to be carried out without the need for a full planning application. These rights are granted by the Town and Country Planning (General Permitted Development) (England) Order 2015 and similar legislation in Scotland, Wales, and Northern Ireland.
The purpose of Permitted Development Rights is to streamline the planning process and provide flexibility for property owners to make minor changes to their properties without going through the full planning permission process. This helps to encourage development and reduces bureaucracy for straightforward projects.
Permitted Development Rights cover a wide range of works and changes to both residential and commercial properties. Some common examples of developments that fall under these rights include:
1. Small-scale extensions: Homeowners can add certain types of single-story extensions, such as rear extensions, under specific size limits without obtaining planning permission.
2. Loft conversions: Converting a loft into living space is often permitted development, subject to certain conditions, such as not exceeding certain volume limits and maintaining the roof's appearance.
3. Change of use: Converting certain types of buildings, such as offices to residential use, or agricultural buildings to commercial use, may be allowed under permitted development rights. (We will cover this one today)
4. Installation of solar panels: The installation of solar panels on the roofs of buildings is generally covered by permitted development rights, subject to certain restrictions.
5. Porches and outbuildings: Building small porches or erecting outbuildings, such as sheds or garages, can often be carried out without planning permission, as long as they meet specific criteria.
It's important to note that while certain developments may be covered by permitted development rights, there are still some limitations and conditions that must be met. These conditions vary depending on the location, property type, and specific rights being exercised. For example, properties located in conservation areas, national parks, or designated areas may have additional restrictions.
Additionally, it's crucial to consult the local planning authority or seek professional advice to confirm whether a proposed development falls within the permitted development rights. It is possible for the local planning authority to restrict or remove these rights in certain areas through an Article 4 Direction.
Permitted Development Rights aim to strike a balance between promoting development and preserving the character of the built environment. They offer property owners greater flexibility, but it's essential to ensure compliance with the relevant regulations and consult the local planning authority when in doubt.
Now how all of the above can be used with Blockchain?
By harnessing the power of blockchain, this process can become more secure, transparent, and efficient, revolutionizing the way we approach property conversions.
Let's explore the benefits and possibilities of integrating blockchain technology into commercial to residential conversions under permitted development rights.
1. Immutable and Transparent Records:
Blockchain's decentralized ledger provides an immutable and transparent record of information related to property conversions. This includes details such as ownership, planning permissions, compliance records, and building regulations. By storing this information securely on a blockchain, stakeholders can easily access and verify the authenticity of documents, reducing the risk of fraud and data manipulation.
2. Smart Contracts and Automation:
Smart contracts are self-executing agreements that automatically enforce predefined terms and conditions. By utilizing smart contracts, the conversion process can be streamlined and automated. Specific triggers or conditions can initiate the process once requirements are met, reducing administrative burdens and ensuring a smoother transition from commercial to residential use.
3. Tokenization and Fractional Ownership:
Blockchain allows for the tokenization of any assets, including real estate properties. Through tokenization, a property's value can be divided into digital tokens representing fractional ownership. This opens up new possibilities for selling or leasing converted residential units, as ownership rights can be easily divided and transferred. Fractional ownership can make real estate investment more accessible to a wider range of individuals and increase liquidity in the market.
4. Secure and Efficient Payments:
Blockchain-based systems offer secure and transparent payment mechanisms. By eliminating intermediaries and utilizing blockchain's decentralized nature, transactions can be executed accurately and without delays. This reduces costs and also provides a secure environment for financial transactions, minimizing the risk of fraud or unauthorized access.
5. Verification of Compliance:
Converting a commercial property to a residential one under permitted development rights requires adherence to various compliance requirements. Blockchain can provide a platform for verifying compliance documents, certifications, and other relevant information. This enables stakeholders, including local authorities and potential buyers or tenants, to easily access and verify compliance, ensuring transparency and saving time in the process.
Let's Wrap this up
There we go is time to wrap things up.
As we know Blockchain technology has the potential to revolutionize the conversation surrounding commercial to residential conversions under permitted development rights. Basically the conversion process can become more efficient, transparent, and secure just by leveraging blockchain's and inherent features such as immutable records, smart contracts, tokenization, and secure payments. However, it's important to recognize that blockchain integration in the real estate sector is still in its early stages, and practical implementation and regulatory frameworks need to be developed. As technology matures, we can expect blockchain to play a significant role in transforming the way we approach property conversions and revolutionize the real estate industry as a whole.
As always, if you have any questions, please feel free to email us at: info@scansanproperties.com
Thanks
Alessio
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