Things like this happen all the time, but this guy takes the cake for creativity. A "demolition and new build" is different than "remodel". The first is usually two permits and the latter a more lenient permit process. I've heard stories of a house getting add-ons on all four sides plus roof, then once the occupancy permit is given, the innards are "remodeled" and the old house is essentually removed. A house near me was all torn down except for a bathroom (it did look kind of silly) and then rebuilt, probably permitted as a remodel. I'm hoping my garage stays up so I can remodel it instead of getting both a demo and building permits. With my luck you know what is really going to happen.
This guy does have guts trying this (and a lot of hay!), but I don't think he'll get away with it. Building departments don't like getting messed with, and council planners are even worse. And I don't know how close the neighborhood (sorry,
neighbourhood - it is in England

) is, but you'd think someone would peek in and maybe notice some construction activity?