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They might well be sensitive and necessary changes but they also, I suspect, in the process of doing what work they have, have made the property unsuitable security for a mortgage by ripping out the bathroom and kitchen. So it's really only one for the builders or developers anyway. And they aren't in the habit of paying over the odds.
Whether they manage to get what what want for it because of the consents they have obtained is another matter.
princeperch-
I don't know anything about mortgages, so didn't know ripping out a bathroom and kitchen had that effect. I mean, I wouldn't say that the consents are necessarily worth the difference in price (I can't imagine they cost that much), and it's been on the market since September, so it doesn't look as if there's been a stampede of buyers.
Oliver Schick
At a guess, it's because 'prices are rising all the time' and because they secured planning permission for some changes, including a dormer roof extension that adds a sloped roof storey with three rooms and a bathroom:
https://planning.lewisham.gov.uk/online-applications/applicationDetails.do?activeTab=documents&keyVal=_LEWIS_DCAPR_108744
https://planning.lewisham.gov.uk/online-applications/applicationDetails.do?activeTab=documents&keyVal=_LEWIS_DCAPR_108712
These are sensitive and necessary changes and good consents. They probably just underestimated the cost. My earlier suspicion that it's something to do with the conservation area was most likely wide of the mark. I should have looked up the planning applications first.