Land is a valuable asset and securing planning permission for its development can significantly increase its value. However, the process of securing planning permission can be complex, time-consuming, and expensive. Therefore, it is essential to have a clear understanding of the planning process and the local market to maximise the value of your land. In this article, we will discuss the key steps you need to take to maximise the value of your land through the planning process.
Get a Development Appraisal
The first step in maximising the value of your land is to do a development appraisal. This is an assessment of your site’s development potential and should consider factors such as planning policy, local circumstances, planning history, and site-specific issues. The development appraisal will provide you with a clear planning strategy that will help you achieve the maximum value for your site.
Engage with the Local Planning Authority
Once you have a development appraisal, sometimes engaging with the relevant local planning authority to gauge their informal views on your proposal is beneficial. This will help you flush out any site-specific issues and speed up the decision-making process. However, be aware that local authorities sometimes charge for these discussions. >> Click here to find your Local Authority.
Consult a Land Agent
A land agent is an expert in sourcing and disposing of land, taking into account the build costs and constraints of the site. They can advise you on existing values and offer guidance on potential values if planning permission is secured. They can also help you explore options such as land assembly, overage clauses, promotional and option agreements, and take into account any covenants, existing tenant, or access issues the site may have.
Consider the Cost, Timescale, and Resources Needed for Planning Permission
The cost, timescale, and resources needed for a planning application depend on the site and proposal. In some cases, it may not be cost-effective to secure planning permission, so it is essential to weigh the investment needed against the potential difference in value and the timescale required.
Be Realistic about Vendor Expectations
Some people assume that if a site has development potential, its existing value can be inflated without securing planning permission. This is not the case, and the value of land must be offset by the costs of development, which will ultimately affect its value. For a development to be viable, it must be financially feasible.
Planning House can advise and support you through the planning process. Contact us for more information and to see how we can help.
Related Content
We have a wealth of information on our website for people going through the process (or for other professions in the industry) our eBooks, Practical Guides and Articles cover a range of topics giving you the information you need, in easy-to-understand terms, without the unnecessary waffle. Feel free to take a look!
