At Phoenix Funding, we help our clients secure finance for all kinds of property. That includes the airspace above land. If you like the idea of creating profit out of thin air, read on.
What are air rights?
‘Air rights’ refers to the legal ability to control the airspace above a building or piece of land. This could include development efforts to extend a property upwards (airspace development), using the space for solar panels and satellite installations, or controlling the use of this space by others.
How high do air rights go?
There is no concrete answer to this question. Section 76 of the Civil Aviation Act 1982 suggests that an aircraft may fly over a property at a height that is considered “reasonable”. Though, no specific height has been determined.
Are air rights level in the UK?
Yes, air rights are legal in the UK. However, they are sold and managed differently from the US and other countries where they’re more established.
For example, property sales in the UK don’t explicitly refer to air rights, but that doesn’t mean they have no value. After all, a plot of land with outlined planning permission for a skyscraper is likely to bring a developer more profit than a plot with permission to build a bungalow.
Who owns my air rights?
In the UK, airspace ownership isn’t typically separated from the land beneath it. Therefore, in most cases, the person or entity that is the registered owner of the freehold also holds the air rights. However, it is possible to sell these development and utilisation rights whilst owning the airspace itself.
Do you need planning permission to use the air rights above your property?
In short, yes. You’ll need to apply and get permission granted to build upwards.
Before approving any request, officers will consider factors such as:
• The surrounding skyline
• Conservation or heritage listings
• Neighbours’ rights to light
• Neighbours’ access rights
• Party wall agreements
• Restrictive covenants
How to purchase air rights
As buying and selling air rights is a relatively new phenomenon in the UK, there’s no defined marketplace where you’ll easily find air rights for sale. So, if this is something you are interested in, finding the perfect space may involve speaking to estate agents or reaching out directly to the landowners and negotiating a price.
How much do air rights cost?
There’s no standardised pricing for air rights in the UK. Instead, the value will be estimated based on the location, development potential, and whether there are any planning restrictions.
For example, air rights may gather a higher purchase price, if they:
• Are in an urban area, such as a city, where there are limited building plots and high demand for residential or commercial space.
• Offer the ability to build additional floors e.g. they’re above any existing structure that can support additional weight.
Phoenix can fund your future
If you’re planning an airspace development but don’t have the funds required, we can help.
Get your development project off the ground with development finance.