Phil Spencer explains how to add £5000 to your home's value without spending a penny

Phil Spencer has a top tip that could add £5,000 to the value of your house. The best part is that it won't cost you a penny.

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It almost sounds too good to be true. However, speaking to This Is Money, the Location, Location, Location presenter revealed that selling a house with planning permission can seriously boost the value of your home.

Phil Spencer's tip for selling a house with planning permission

'Converting the loft or adding an extension provides the biggest-value boost, but will typically cost between £20,000 and £40,000,' explains Phil.

'Just by applying for planning permission, you can sweeten the deal for a potential buyer. It might give a growing family the confidence that they can squeeze in an extra bedroom.'

Many sellers, including House Simple, have seen an increase in sale price after obtaining planning permission. It can increase the property value by 10 per cent and encourage a quick sale.

However, there are two main types of applications for planning permission. The full planning permission application requires a detailed proposal and will cost you £206 for an extension in England. Outline planning permission, on the other hand, is a little bit more flexible and you can get it for free.

'A full planning application requires an architect's drawings. But, with a bit of research, you can often secure outline planning permission for free by applying to the local planning authority yourself,' explains Phil Spencer.

An outline planning permission application allows for a decision on how the general principles of the site will be developed. There are some conditions, but the application is less detailed than a full planning permission application.

However, before you start rushing to apply for planning permission, it is important to address what changes would benefit your property. You might find them many of the changes don't need any planning permission!

Related: Five home renovations you can do WITHOUT planning permission

Follow Phil's advice and make sure you do your research.