A listed building means it is included on the statutory list of buildings of special architectural or historic interest. The status is intended to protect buildings from alterations that may negatively impact the character of the building and its historical context.
Listed properties are unique and can be full of character and period charm. There are over half a million listed buildings in England alone but not all are perfectly managed and maintained.
Is buying a listed property a sound financial investment or just the tip of a financial iceberg?
Listed building categories
Under the listing system run by Historic England, there are three categories for the estimated 514,000 listed homes in the country:
- Grade I for buildings of exceptional interest (2.5% of listed buildings)
- Grade II* for buildings of particular importance (5.5%)
- Grade II for those of special architectural or historic interest (92%)
Rewarding experience
Taking on a listed building can be a rewarding experiences for those who relish investing in, and inhabiting part of the nations historical fabric and culture. It is however vital for buyers to go into a purchase fully informed and advised when it comes to the costs of refurbishment, maintenance, materials, insurance and energy use.
Good investment or financial nightmare?
Removal of rose-tinted spectacles and dispatching emotional attachment is essential – or the risk of a dream residence becoming a house of financial pain is ever present.
The costs of buying, restoring, renovating and maintaining a listed building – which are subject to strict controls on building work and materials used – are hard to predict, but almost inevitably the costs of refurbishment, maintenance, materials will be much higher than many expect particularly when compared to that of modern buildings. Typically, the costs of work performed on a listed building can be a much as double.
Residential properties to be lived in
Pro – A listed status does not mean a building’s features have to be fixed in perpetuity. Conservation officers readily acknowledge that properties need modern kitchens, bathrooms and heating systems if they are not to be abandoned in large numbers and left to rot and ruin.
Con – One of the biggest risks for buyers is to assume that the listed home they are purchasing automatically conforms to the listing rules. If any of the previous owners have carried out work incorrectly, it becomes the new buyer’s responsibility to put it right.
Historical fabric
Purchasing a listed building should be seen as a good investment in terms of maintaining and consolidating buildings that are part of the richly woven historical fabric of this country. Whether buying a listed building is a good financial investment is probably still open to continued debate.
