Proposed changes in the government’s Localism Bill could bring uncertainty and chaos to the property market, the Law Society has warned.

The bill proposes changes to planning rules, including strengthening the power of local authorities to tackle abuses of the system.

It will allow local planning authorities to pursue a planning enforcement order at any time if it becomes aware that there has been a breach of planning control, and to require the property owner to remedy that breach.　

This means that a new owner could become liable to enforcement action for a breach committed in the past by the previous owner. If a buyer discovers a concealed breach and then fails to report it, they will be concealing it themselves, the Society warned.  

Law Society president Linda Lee said the new regime could create uncertainty for the buyers of both residential and commercial property when they cannot establish whether previous owners have concealed a breach of planning control.

She said: ‘These reforms could have a serious effect on both the residential and commercial property markets, where innocent purchasers could become liable for the actions of a previous owner.’

Lee said it could lead to purchasers demanding that every breach of planning control is remedied, or that the price is abated for the risk.

She said the proposed change could delay transactions while enquiries are made about the planning status, and increase the due diligence that buyers need to do, which would mean they incurred greater expense and may need to take out insurance against any unknown potential liability.

‘While aimed at the fraudulent and blatant cheats, the provisions are drawn so widely that they will catch anything which has not been expressly pointed out to the planning authority,’ said Lee.

At present the Town and Country Planning Act provides time limits, beyond which no enforcement action or planning breaches can be taken.