How Exactly You Can Value Land Without Planning Permission

Would you be able to secure planning permission?

Have there been approvals granted for self builds in the area? Were they approved first time or go to appeal? Was there local support or objection? This will show how ‘pro development’ the local area and council are. 

It is worth finding out if your plot is situated within the development boundary of the town or village. Sometimes referred to as the ‘red edge’, it identifies the urban area considered suitable for development.

Replacement dwellings, infill and garden plots are great as they will likely be situated within this boundary and are more likely to be ripe for development. 

Plots in the Open Countryside

Be cautious. If you are offered a field at what seems to be a bargain price, then the likelihood is that it won’t be suitable for development. If you're unsure if your land is suitable for development then why not take advantage of our free planning appraisal service.

In rural areas, replacement dwellings are the most common way of building a new house. Securing planning permission will be specific to the plot and what you want to build so you will need to understand if this is possible.

Check the Local Authorities development plan and investigate the council’s planning policies to assess whether your proposals meet their criteria. Consider having a ‘pre app’ with the council to find out if your plans are sensible.

Are there complications?

Many complications can be overcome with the right amount of money and time.

Land within conservation areas, areas of outstanding beauty, open countryside and situated adjacent to listed buildings will have restrictions which will limit what you can build.

Consider legal issues such as covenants, easements and rights of way, which can be equally restrictive. Ensure that any existing permission has adequate time left in which to start your build before expiry!

Many build complications will be obvious such as access, site gradients and boundaries. Take time to meet with neighbours and talk to anyone that may know the history of the site.

Employ a professional to carry out a site investigation prior to purchase to identify potential site problems and make sure that your proposed purchase price reflects investment.

Am I paying the right price?

Quite literally, the million dollar question. Valuing a building plot is much more difficult than valuing a house as there are many more variables. You need to know what you want to build and understand the type of property the land will support in order to value the plot accurately. You will also need an accurate build cost as well as an understanding of costs of development such as CIL, legal and professional fees. 

Start with the end value of the completed home and deduct the total cost of development along with your retained equity. What’s left is the plot value…simple!

Beaten by a builder…

Builders are not prepared to pay any more than they have to for a plot and as a result of having to make a profit, they will probably pay less than a self builder. The advantage that builders have is that they understand the cost of development and how to control it. If you are really serious about buying a plot, think like a builder, do your homework, understand costs, identify the potential value, know the risk involved and buy accordingly.