James Vernor-Miles comments on what happens when your property becomes a surprise asset in Tatler

James’ comments were published in Tatler, 18 July 2024, and can be found here.

What really happens when your home becomes a surprise asset

Woken up to discover a Banksy on your wall? It’s more complicated than you think, warn top lawyers

Back in March, the latest Banksy mural popped up on the side of a North London block of flats, with residents speculating whether the prices of their homes had overnight, quite literally, skyrocketed. It’s not the first time street art has propelled a home to overnight fame.

What happens when someone is sitting on a property that suddenly becomes, rather unexpectedly, a bigger asset than they had thought?

‘A property asset suddenly becoming an art work, like the Banksy Tree mural that appeared overnight on the wall of a block of flats in Hornsey in March this year, can be a double edged sword in terms of unexpected value added,’ says Hetty Gleave, art lawyer and partner at Fladgate LLP. ‘Is it graffiti and therefore an act of criminal damage contrary to the Criminal Damage Act 1971, or an enhancement to a building causing it to rise in value? The owner of a building that has a Banksy appear on it overnight can certainly expect attention from the curious to art tourists and those who just want to cause trouble,’ Gleave adds.

‘I’ve been involved in a handful of situations involving Banksy murals on private property,’ says Sarah Barker, Head of art law at Withers Worldwide. ‘There are upfront financial costs and often stressful decisions for property owners to make, but with the right advice and support an overnight Banksy mural can be positive for the homeowner and sometimes for whole communities.’

Of course, this scenario isn’t just related to art. James Vernor-Miles, Partner at Hunters Law says, ‘A more regular occurrence is this: A client owns a large parcel of countryside; say, a buffer around their lovely house. The local planning authority (unilaterally, and publicly) designates some of that land as strategically available housing land – meaning that the land may be more easily granted permission for housing development. The client calls to say they read about this locally; and they ask if it is a concern? No – no-one is buying your land without your consent; but the land you bought as a buffer is now “on the radar” of housing developers or promoters who are likely to start sending you offers. Offers that suggest the land is much more valuable than you thought it was, as a buffer. What they thought was a “buffer” is now a very valuable opportunity.’

Read the full article: What really happens when your home becomes a surprise asset (Tatler)