Airspace in property refers to any space above an existing building such as a house or block of flats up to a reasonable point. This gives the landowner or leaseholder the legal right to extend above this building for their personal gain.

For many leaseholders and property owners, airspace offers some exciting development opportunities to add an extra floor or number of rooms to their current home or building that is rented out to tenants. 

Especially in dense areas where there is limited space, such as London, the opportunity to build upwards can be very attractive, helping you to increase the value of the overall property and add more tenants to help generate more revenue. For the leaseholder, you are able to earn more for owning the same building which is very commercially interesting.

Research shows that developing airspace could add an extra 200,000 homes/flats in London in the future.

It is a very popular idea from a sustainability point of view, by building up rather than encroaching on green belt land. There are also some exciting opportunities to construct the all the parts off-site and then they can built quickly on site, which will limit build costs and increase efficiency.

The ability to develop your airspace applies to:

• Residential homes
• Blocks of flats
• Office blocks
• Hotels
• Schools and public sector buildings
• Car parks
• Stadiums
• Event venues
• Shopping centres and shops
• Health centres

How Much Airspace Can I Develop On My Property?

The UK law says that you can build above your property up to a reasonable height. This may vary depending on the planning permissions of your local authority, with some allowing a maximum of 500 feet and others allowing up to 1,000 feet.

The laws set by the Civil Aviation Authority (CAA) state that the ownership of airspace does not extend infinitely upwards. So if you have plans of building the next Burj Khalifa from your humble abode, you may need to start from scratch. 

You also have the option to sell your airspace to a developer or investor who might want to finance an extension.

Do You Require Planning Permission To Develop Your Airspace?

In many scenarios, you may not require planning permission to develop airspace. 

There are permitted development rights to add two additional floors to blocks of flats.

To avoid planning permission, the building must be:

• Three storeys or more in height
• The extended building must be more than 30 metres in total height
• The height of the extension cannot be greater than seven meters compared to the highest part of the existing roof. 
• Any new storeys must be individually no more than three meters in height. 

Airspace Considerations For Neighbours and Existing Residents

When building and developing airspace, one has to be mindful of existing residentials in the building and neighbours. Whether planning permission is required or not, you may have to deal with pushback if you are working with overhanging drones or cranes or your tenants are subject to loud noise. Managing this is key to ensure a smooth build and transition. 

Can You Get Airspace Development Finance?

Yes, KP Finance offers personalised loans for airspace development. Whilst this type of funding is not offered by most mainstream lenders, we understand the complexities involved and can structure the finance according to your needs.

With the opportunity to build on properties in cities and other sought-after areas, the use of funding could help you turn around the project very quickly and generate an impressive revenue and additional stream of income.

For more information, please contact the KP Finance team by phone on +44203 488 1128 or email the team at enquiries@kpfinance.co.uk