Last reviewed: June 2026
TL;DR- Listed buildings can be mortgaged but lenders must be satisfied the property is insurable and that maintenance obligations do not make the asset a depreciating risk.
- Grade I listed buildings (the most significant 2% of listed buildings) face more restricted lender choice than Grade II listed properties.
- Listed Building Consent is required for any works that affect the character of the building - unauthorised works are a criminal offence and affect mortgageability.
- Specialist buildings insurance for listed properties is typically more expensive than standard home insurance and must be in place before completion.
What Is a Listed Building?
A listed building is a structure of special architectural or historic interest, protected under the Planning (Listed Buildings and Conservation Areas) Act 1990. In England, listed buildings are classified by Historic England into three grades:
- Grade I: buildings of exceptional interest (approximately 2% of all listed buildings).
- Grade II*: particularly important buildings of more than special interest (approximately 6%).
- Grade II: buildings of special interest (approximately 92% of listed buildings).
Scotland, Wales and Northern Ireland have their own listing systems and grading frameworks administered by Historic Environment Scotland, Cadw and the Historic Environment Division respectively.
Mortgage Availability for Listed Buildings
Mainstream mortgage lenders will consider Grade II listed buildings provided the property is in good condition and the insurance position is satisfactory. Grade II* and Grade I listed buildings are more restricted - fewer lenders are willing to assess these properties due to the higher maintenance obligations, the more complex planning restrictions and the specialist insurance requirements. Some mainstream lenders decline all listed building applications; others accept Grade II only. Specialist lenders with experience in heritage property are important for Grade I and II* properties.
Lenders are primarily concerned with whether the property can be sold in the event of repossession. A listed building in poor condition with a backlog of required maintenance is a higher risk to the lender than a well-maintained listed property. Evidence of ongoing maintenance and compliance with listed building consent obligations strengthens the mortgage application.
Listed Building Consent
Listed Building Consent (LBC) is required for any works that affect the character of a listed building, both internally and externally. This is in addition to standard planning permission. Common works requiring LBC include: replacing windows or doors; alterations to internal layout; changes to external materials; installation of solar panels, insulation or other energy efficiency measures; and any alterations to historic fixtures and fittings.
Carrying out works to a listed building without LBC is a criminal offence under the Planning (Listed Buildings and Conservation Areas) Act 1990. Unauthorised works can result in an enforcement notice requiring the works to be reversed, regardless of who carried them out. When purchasing a listed building, buyers should obtain evidence from the seller of LBC for any works carried out during their ownership. Outstanding enforcement notices or evidence of unauthorised works affect mortgageability and should be investigated by the conveyancing solicitor.
Insurance for Listed Buildings
Standard home insurance is typically insufficient for listed buildings. Specialist listed building insurance covers the cost of reinstatement using traditional materials and techniques appropriate to the building's historic character, which is significantly more expensive than standard construction reinstatement costs. Lenders require evidence of adequate buildings insurance before completion. Buyers should obtain a specialist insurance quotation before exchange of contracts to confirm the property is insurable and the premium is acceptable.
Frequently Asked Questions
Can I make energy efficiency improvements to a listed building?
Energy efficiency improvements to listed buildings are subject to Listed Building Consent and must be compatible with the character and fabric of the building. Some standard energy efficiency measures (cavity wall insulation, replacement double glazing) are often not appropriate for listed buildings and may be refused consent. Historic England and local conservation officers can advise on appropriate approaches for specific buildings. Some energy efficiency improvement funding schemes have different eligibility rules for listed buildings.
Does listing affect the value of a property?
Listed status has an ambiguous effect on value. The architectural or historic interest of the building and its uniqueness can add value. The additional maintenance obligations, planning restrictions and insurance costs can reduce the pool of buyers and depress value relative to an unlisted equivalent. The net effect on value depends heavily on the property, its location and the local market for heritage property.
How do I find out if a property is listed?
The National Heritage List for England (NHLE), maintained by Historic England, is the searchable register of all listed buildings in England. It can be searched by address, postcode or map. Equivalent registers exist for Scotland (Historic Environment Scotland), Wales (Cadw) and Northern Ireland (Historic Environment Division). The listing information includes the grade, the date of listing and a description of the building's significance. Properties in conservation areas have additional planning protections even if not individually listed.
What happens if I buy a listed building and then discover unauthorised works?
The purchaser of a listed building can be held liable for remedying unauthorised works even if they were carried out by a previous owner. Enforcement notices do not expire with a change of ownership. A conveyancing solicitor should investigate the listed building consent history and identify any outstanding enforcement action before exchange of contracts. Listed building searches and a thorough solicitor review of the planning and enforcement position are essential for any listed building purchase.
