When deciding to sell a piece of land, there are a number of factors that come into play when trying to get a valuation. For example, location, the current state of the housing market, transport linkages, and physical attributes will all either add or take value away from a piece of land. However, there are none that play as big a role as planning permission/consent.
When first looking into selling land, most people believe that planning consent will only affect the price by a little margin ,however land with planning permission can achieve eight to ten times more than land without this key detail. In addition to this, land is said to be accountable for around one-third of the property value if it is residential; in some cases, this can even increase to half.
Pricing Land – When valuing land, it is a simple task without planning permission because the Land Registry regularly releases reports that show the exact value of agricultural land per acre. However, there are some occasions where it is necessary not to consider the average. For example, it might be wise to contact a professional if the land is close to road networks, to other developments, or is located in an area that will see development in the coming months and years.
In essence, planning permission is vital to achieve a good price for a piece of land. When looking for a quick sale, it may be possible to find an expert who will work with a landowner and seek planning permission, so as to generate as much revenue from the land. The expert will look at every aspect of a planning application to yield the best possible options.
Attaining Planning Consent – As soon planning permission is obtained, it can transform a simple field into a business opportunity for many investors and this is what makes it so important. Although some will take time, effort and energy working with planners and architects the results can be impressive
Firstly, the process will start by submitting an application to the local authority. Despite popular belief, the planners are actually under tremendous pressure to review applications quickly nowadays which should see a decision returned within around eight weeks. Planning officers work in line with government performance based initiatives ,which means that it is in the council’s interest to process the application quickly.
It is necessary that the application be tracked to make sure that it doesn’t hit any bumps along the way, by way of phone call or email. In the past, in the past councils were a amenable to listen to amendments in order to make the application work but this doesn’t really exist as councils are remunerated by an amendment process. With this in mind, applicants will need to be accurate with the application and only apply if after all discussions between planners, architects and land owners have taken place at outline plannin
If a problem does occur, it will be much easier and cheaper to withdraw the application and start again rather than seeing it rejected. If a mistake is made, the application can be withdrawn, amended, and then an re-application can be mad, with incurring more fees. If the application is rejected, a flag is drawn against the planning application and it will be extremely hard to get consent from that point forwards.
After Permission – Once planning permission has been given, the seller can then proceed to market the land. To start, a valuer will determine the price, give a guesstimation, this based on end values of development and sales prices vs construction and marketing. This obviously is not a simple process as it needs to be coordinated with the experts.
Factors that affect price of land
Area – In the UK especially, plots of land are reliant on the surrounding area so assessing the local housing market is always a good place to start. Of course, there is the obvious divide that still exists between the north and the south but all sellers should also dig a little deeper within the county and even town. Once this has been done, it is possible to check the HM Land Registry for local and regional pricing data.
Transportation Links – Regardless of whether the land will be used for a residential or commercial property, the transportation links are also important. If residential, the owners may have to travel to and from town as well as their jobs. If commercial, many employees will have to travel to the location which could be tricky if it is in the middle of nowhere. Not only should the seller look at public transport, the road networks and motorways also have to be assessed.
Physical Attributes – Although the quality of the location is important, the climate and topography will also play a role in pricing a piece of land. Additionally, a higher price will be received if the land has good access to sewer and water lines.
Amenities – For many, the availability of schools, hospitals, shops, parks, and others such as this will be important so this will affect the pricing of land. If people are going to live on the piece of land, they need to be in close proximity with a neighbourhood so that they can do their shopping and have somewhere to buy food. If this isn’t available, the price will be lowered because there are plenty of lots that do offer these benefits.
Economy – If the country is in the middle of a recession, consumer confidence will be low and nobody will want to spend any money for fear of going bankrupt so this also needs to be considered. When it comes to economics, a simple case of supply and demand will change prices. If there is very little land on the market, there will instantly be a price rise. If there is an overload of land, all sellers might struggle to reach market value.
Selling the Land – Once it has been valued correctly, the attention then switches to selling and there are a number of buyers who might be interested. Depending on whether it is residential or commercial, the following could be targeted; land investors, horse and pony owners, self-builders, property developers, farmers, and more.
Nowadays, the increase in technology has made the selling process more efficient so the land could be listed on various websites as well as contacting local estate agents. With all the various apps and platforms available now, it can be easy to forget the local area but this can be just as effective. If there is a farmer nearby who is looking to expand, for example, this is a great opportunity to sell the lot.
When a buyer is found, the seller will need to contact a solicitor in order to complete the process fully. If the sale is to be completed legally – land sales still take place on a back of a envelope! – a solicitor will always be the best way to go because they will be able to assess all of the necessary paperwork.
Selling Without Planning Consent – Buyers can be found if there is no planning permission and many buyers land that can’t get planning speculatively, the first thing that a professional will ask is whether planning permission has been sought and why it hasn’t got planning
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