How to Sell Land with Planning Permission in the UK: Complete Guide

Understanding the Value of Planning Permission

Planning permission can dramatically increase land value. Government figures suggest that residential planning permission can increase the value of agricultural land from £22,000 to £1.95 million per hectare. If you get planning approval for your land, you could increase its market price by up to 10%, with plots in prime locations like London and Edinburgh typically seeing a 10% increase. When planning permission is added to the equation, a land site could get 8-10 times more value.

The value added depends on several factors including location, type of permission (outline or full), time of approval (planning permission expires after three years), type and extent of work covered, and whether the permit includes adding more floor space.

For detailed analysis of how planning permission affects land values and residual valuations, refer to the London.gov.uk research on threshold land value and development viability.

Key Steps to Selling Land with Planning Permission

Confirm Ownership and Register the Land

Ensure the land is registered with HM Land Registry, proving clear title and ownership. Unregistered land can put buyers off and delay the process. Check that you are the freeholder by visiting Land Registry who hold all recorded land-holding details in the UK. If your land isn't registered, you can do it yourself or get a solicitor or conveyancer to do it for you. Collect all title deeds, plans, and supporting documentation.

Secure and Maintain Planning Permission

Obtain either outline or detailed (full) planning consent—the more detailed, the higher the value and buyer confidence. Planning permission normally lasts for three years from the date it's granted by the local planning authority. After three years, the permission expires and you would need to re-apply if you haven't started work.

For full planning permission, you have three years to start construction work. For outline planning permission, you get three years to resolve your reserved matters, then once you've laid out all the details with your local authority, you have to begin construction work within two years.

Check for any restrictions, covenants, or obligations (e.g., Section 106 agreements), which may affect the permission or the land's use.

Prepare a Comprehensive Sales Pack

Prepare documents a buyer or developer would need, including:

• Proof of planning permission and all conditions
• Site plans and detailed drawings
• Legal title and Land Registry documents
• Drainage and utilities information
• Access rights documentation
• Environmental or local authority reports
• Any Section 106 agreements or planning obligations

Address any issues such as boundary disputes or rights of way before marketing.

Conduct Thorough Due Diligence Preparation

Buyers will conduct extensive due diligence, so be prepared with comprehensive documentation. This includes property searches covering planning history, flood risk, contamination, detailed title review to spot any restrictive covenants, easements or rights-of-way, and any necessary site surveys.

Legal due diligence involves a comprehensive review of all legal aspects including title verification, planning permissions and restrictions, environmental and structural risks, leasehold issues, and tax implications.

Choose the Optimal Marketing Strategy

Consider various marketing approaches:

• Private treaty working with estate or land agents
• Public auction (faster, but price less predictable)
• Specialist land agents for broader reach and buyer competition
• Use specialist land portals like Landlister alongside traditional estate agents

Digital Marketing Dominance

Professional photography is essential - invest £150-300 in professional photos including twilight shots, aerial views, and lifestyle staging. Properties with professional photos get 61% more views. Drone photography provides aerial shots that can showcase the property size and surroundings effectively.

Virtual Tours & Video: 3D tours increase enquiries by 95%. Video walkthroughs are essential for larger properties, costing £200-500 and reducing wasted viewings.

Social Media Strategy: Use Facebook marketplace, Instagram stories, and LinkedIn for relocators. Targeted ads can reach specific buyers with a budget of £100-300, generating 20% of enquiries.

Strategic Timing Optimisation

Spring Peak (March-May) offers highest buyer activity with gardens showing best. There are 18% more viewings than average with price premiums common. Launch early March for maximum impact.

Autumn Surge (September-October) is the second-best period with serious buyers having deadlines, less competition from other sellers, and good for family homes near schools.

Avoid December as it's the worst month for selling with 65% fewer viewings.

Target the Right Buyers

Market the land to developers and self-builders most interested in sites with planning permission. Use land sale portals, specialist agents, or auction houses with experience in land sales. Target developers who understand the value proposition of land with existing planning consent.

Provide clear information about planning permissions, including site visit details and potential development value. Highlight unique features such as location, zoning, access to amenities, and natural resources.

Negotiate Offers and Agree Heads of Terms

Negotiate the best offer—some buyers may want conditional contracts (completing after planning is confirmed) while others proceed immediately if permission is secured. Negotiate terms including price, deposit, and any conditions. Prepare a Heads of Terms document early to set out key deal points.

Once a deal is reached, agree 'Heads of Terms'—the principal details of the agreement including price, timescales, and conditions.

Legal Requirements and Compliance

Written Contract Requirements

Section 2 of the Law of Property (Miscellaneous Provisions) Act 1989 states that a contract for the sale or other disposition of an interest in land can only be made in writing and must incorporate all the terms which the parties have expressly agreed in one document. For detailed guidance on creating valid contracts, see the LexisNexis legal guidance on contract formation.

The contract must be signed by or on behalf of each party to be legally binding. Without these components, there will be no contract and there could be problems with the transaction.

Complete Legal Transfer

Instruct an experienced solicitor for land sales to finalise contracts. All land sales must be in writing and meet specific legal requirements. Once signed by both parties, the seller becomes trustee and the purchaser owns the equitable interest until completion.

Transfer title, settle any outstanding obligations, and facilitate completion. The legal process involves contracts, title searches and conveyancing similar to property sales.

Tax and Financial Considerations

Capital Gains Tax Implications

Expect to pay Capital Gains Tax (CGT) on profit from the sale unless exemptions apply. Seek early specialist advice on tax structuring. If the land is part of your primary residence, you may qualify for Principal Private Residence Relief (PRR), but the planning consent and your intentions for the land can affect this.

The land being sold shortly after obtaining planning permission may trigger rules where the entire gain is taxed as income, not capital, meaning potentially higher tax rates.

VAT and Other Taxes

Check whether VAT or other taxes apply based on your circumstances. The tax implications can be complex, particularly when planning permission adds significant value to the land.

Planning Obligations: Be aware of any obligations to provide community benefits or infrastructure under Section 106 agreements. Ensure no restrictive covenants will prohibit development or transfer (your solicitor will check).

Professional Support and Best Practices

Engage a land agent or specialist solicitor early for smooth transaction handling and compliance. Create a professional online presence with a user-friendly website showcasing high-quality visuals and engaging content about the land.

Organise all paperwork before going to market to avoid delays and build buyer confidence. Be realistic about sale timescales; even with planning permission, contracting and legal checks can take weeks to months.

Follow up promptly with interested buyers and provide additional information to maintain interest. Address potential buyers by name and customize messages based on their expressed interests.

Stay informed about market trends and regularly review your marketing strategy, assessing effectiveness and making necessary adjustments.