As housing demand increases, there are more opportunities for landowners to sell their land for potential residential development. One of the biggest setbacks to meeting the demand for housing development is the ability to find suitable land. If your land is appropriate, it could hold significant value.
Does my land have development potential?
The starting point when wanting to discover if your land has development potential is to find out whether or not the local council will allow for development to take place. The Local Plan, which sets out what types of development are allowed in which locations, can be used to identify what your site may be suitable for or what restrictions may exist.
Is the site technically deliverable?
The council will need to consider numerous factors, such as whether the development is technically deliverable. This includes the drainage system, gradient, and access.
- The surface water from a site has to be drained in a sustainable way, such as being directed into a nearby stream or river, at a rate that will not make other areas more likely to flood. If your land does not have a sustainable drainage system, it will not be suitable for development.
- The site must have suitable access. Even if it appears obvious as there is an adjoining road, you should double-check that the location is satisfactory.
Is the site sustainable?
Land that is situated next to existing development and within walking distance to schools, shops and other services is more likely to be appropriate for development, and have a considerably higher value to developers.
Does your land have development constraints?
There are lots of factors to consider, such as potential flooding, land contamination and land ownership.
- Flood zones are used to determine how likely somewhere is to flood. It’s important to check if your land resides in such an area.
- Land contamination is associated with previous industrial or commercial use on the site or nearby site. If land contamination is discovered, it can be very expensive to solve and so the value of your land will decrease significantly.
- Unregistered land, boundary issues, easements or rights of way will all have a detrimental impact on the ability to develop your land.
There are numerous other constraints that the council will need to take into account: ecology, noise and air pollution, agricultural land quality, heritage issues, and infrastructure requirements.
How much is your land worth?
How much your land is worth to a developer will depend on several factors:
- Whether planning permission is already in place
- The number of potential homes that can be built on the land
- The potential value of the homes being built
- The costs involved in building the new homes
The value of your land is worth the amount that the buyer is willing to pay for it, and the financial return that the buyer can achieve themselves.