How to Sell Land for Development
Selling land for development can be lucrative but requires understanding the planning system and what developers value.
Understanding Planning:
Land with planning permission commands premium prices
Outline permission indicates likely approval for residential development
No planning permission? Land may still have value if policy supports growth
Local Plan allocations indicate areas earmarked for development
Green Belt restrictions significantly limit development potential
Getting Planning Permission:
Submit a planning application (£462 for outline permission in England)
Hiring a planning consultant improves success rates
Pre-application advice from the council provides guidance
Neighbors' concerns can impact decisions
Appeals can be lodged if permission is refused
Valuing Development Land:
With planning: 15-20% of gross development value (GDV)
Without planning: Significantly less, often 10-30% of value with permission
Location, size, access, and constraints all affect value
Professional valuation provides realistic expectations
Comparative sales research shows market rates
Selling Strategies:
Private treaty: Direct sale with set price and terms
Auction: Competitive bidding, faster sale
Option agreement: Sell future development rights
Promotion agreement: Share in profits when planning gained
Land agent: Specialist expertise and buyer network
Maximizing Value:
Remove any contaminated materials or issues
Secure access for construction vehicles
Confirm utility capacity is available
Clear any restrictive covenants if possible
Market extensively to reach all potential buyers
Consider consulting a specialist land agent who understands the development market and can maximize your sale value.
How to Sell Land for Development
Selling land for development can be lucrative but requires understanding the planning system and what developers value.
Understanding Planning:
- Land with planning permission commands premium prices
- Outline permission indicates likely approval for residential development
- No planning permission? Land may still have value if policy supports growth
- Local Plan allocations indicate areas earmarked for development
- Green Belt restrictions significantly limit development potential
Getting Planning Permission:
- Submit a planning application (£462 for outline permission in England)
- Hiring a planning consultant improves success rates
- Pre-application advice from the council provides guidance
- Neighbors' concerns can impact decisions
- Appeals can be lodged if permission is refused
Valuing Development Land:
- With planning: 15-20% of gross development value (GDV)
- Without planning: Significantly less, often 10-30% of value with permission
- Location, size, access, and constraints all affect value
- Professional valuation provides realistic expectations
- Comparative sales research shows market rates
Selling Strategies:
- Private treaty: Direct sale with set price and terms
- Auction: Competitive bidding, faster sale
- Option agreement: Sell future development rights
- Promotion agreement: Share in profits when planning gained
- Land agent: Specialist expertise and buyer network
Maximizing Value:
- Remove any contaminated materials or issues
- Secure access for construction vehicles
- Confirm utility capacity is available
- Clear any restrictive covenants if possible
- Market extensively to reach all potential buyers
Consider consulting a specialist land agent who understands the development market and can maximize your sale value.