Market Update: Shifting house prices and the rise of the Garden Room

Similarly, the volume of agreed sales improved, with net balance of -9%, which was the least negative reading since June 2025. House prices have also reached a “potential turning point”, the RICS survey said. Although more agents reported falling rather than rising house prices over the past three months, with the house price gauge standing at -10%, this was up from a low of -19% in October.

Simon Rubinsohn, the chief economist at RICS, said: “There are early signs that market conditions may be improving after a challenging period, although activity levels are still subdued, meaning any recovery is likely to be gradual.”

Estate agents and surveyors had reported that activity in the housing market slowed considerably in the months leading up to the autumn budget at the end of November, due to uncertainty over what taxes may be applied to property transactions. This included fears of changes of stamp duty and capital gains taxes being paid on some primary residences, although neither measure was eventually announced in the budget.

While some estate agents have reported a “new year bounce” in activity since the budget, many also report continued concerns from buyers about economic uncertainty, interest rates and cost of living pressures.

Rubinsohn said: “Whether this tentative improvement develops into sustained momentum will depend heavily on the trajectory of mortgage rates and broader macro confidence over the coming months.”

As homeowners increasingly seek additional space for remote work, fitness, and relaxation, garden rooms have become one of the most popular home improvement solutions. Yet concerns about planning restrictions often hold people back from taking the next step. This comprehensive guide addresses every aspect of UK garden room planning regulations, helping you navigate the complexities with confidence.

Permitted Development Rights are a national grant of planning permission which allow certain building works and changes of use to be carried out without having to make a planning application. For garden rooms, this means you can likely proceed without the delays and costs associated with formal planning applications.

In most cases, you do not need planning permission for a garden room, as they typically fall under permitted development rights, but there are specific conditions and exceptions to consider.

General guidelines

Permitted Development Rights: Most garden rooms are classified as outbuildings and can be constructed without formal planning permission, provided they comply with certain conditions. This means you can usually proceed without the delays and costs associated with a planning application. 

Conditions to Meet: To qualify for permitted development, your garden room must adhere to the following rules:

"Garden rooms are classed as ‘outbuildings’ and as such can be built on your property without permission as long as you comply with permitted development guidelines."

Garden rooms do not always fall within permitted development so in some cases it might be necessary to apply for planning permission to construct a garden room. This might apply to you if

• Your garden room will occupy more than 50% of the total area of land around the original house
• The structure will be two storey or be over 2.5m
• WIll have an overall height greater than 4m for a dual-pitched roof, or 3m for any other roof type
• Will be a room used for sleeping accommodation
• The garden room is being built in the grounds of a listed building

There are other instances where planning permission might be required for a garden building which is why it is crucial to check beforehand. Your local council or a professional planning consultant will be able to advise you.

"In some areas, such as conservation areas, National Parks, and areas of outstanding natural beauty, there may be additional restrictions on what is allowed under permitted development rights,
“It is important to know that, officially, any building must not itself be separate self-contained living accommodation as this will not fall within permitted development,” advises Sarah Shah.

“An outbuilding must serve the main house and not be independent from it, meaning you can’t use it as self-contained accommodation, or as a bedroom, bathroom or kitchen," explains Pete Tonks. "Without planning permission, a garden room could not be an annexe to house an elderly relative or teenager, and using it as a holiday let is certainly out of the question.”

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It should not be located in front of your home.

The total area of all extensions and outbuildings must not exceed 50% of the total land area around your house as it was on July 1, 1948.

The garden room must be single-storey and less than 3 meters high (or 4 meters with a dual-pitched roof). If it is within 2 meters of your boundary, the maximum height is 2.5 meters. 

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It should not have a balcony, veranda, or raised platform, and it cannot be self-contained living accommodation.

Whilst planning permission and building regulations are separate processes, understanding building regulations is essential for garden room planning. These regulations ensure structural safety, energy efficiency, and electrical safety.

When Building Regulations apply

Building Regulations (except Part P for electrical works) do not normally apply if the internal floor area is less than 15 square metres and contains no sleeping accommodation.

For larger garden rooms:

• 15-30m² internal area: Building regulations don't apply provided the building contains no sleeping accommodation and is either at least one metre from any boundary or constructed of substantially non-combustible materials
• Over 30m² internal area: Full building regulations approval is required regardless of use
• Any sleeping accommodation: Building regulations apply regardless of size if the space includes sleeping accommodation

All permanent electrical installations, including lighting, heating, and sockets, must comply with Part P of Building Regulations and be installed by a certified electrician. This applies to garden rooms of any size and is one of the most common requirements for garden room projects.

For further information on the topics raised in this article, or if you have a legal matter you'd like to discuss, please contact Mustafa Sidki on 020 8461 6140 or mustafa.sidki@thackraywilliams.com, who would be delighted to assist.