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Determining Value of Plot of Land for Sale

Trying to determine the value of land in the UK can be a little challenging. Unlike house value, coming to the amount of money a plot of land is worth requires some consideration based on a variety of factors. Now, keep in mind that factors used for pricing land in the UK is also the same as with houses. However, the difference is that land is valued in isolation instead of comparing one plot to another plot.

To understand plots of land for sale in the UK better, we have broken some of the factors down for you.


For starters, plots of land in the UK are priced according to local housing market. Therefore, if you were to look at land in the area of Surrey, you would expect to pay more than land of the same type in Liverpool. Then, to determine good land from less than desirable land, both local and regional house and land price data is available from the HM Land Registry along with various building societies.

Transportation Links

Another factor associated with the price of land has to do with transportation links. Obviously, land for sale that is close to a major roadway, motorway, or railway is more expensive than land not as accessible. Keep in mind that land in the country is considered a great investment but in this case, you have the challenges of not having good access. Therefore, land considered convenient to schools, shopping, and other places in town are prime.

Planning Permission

Yet a third consideration in the price of land is whether planning permission must be granted for the purchase to occur. Private parties that can find and buy land without needing consent for planning have the opportunity to make a tremendous profit. However, the key here is to make sure the land purchased is in the right location, being close to new and/or existing housing developments.

For instance, if you find land that is close to existing housing but where no planning permission has been applied for, you might pay a price somewhere around 30,000. On the other hand, if planning permission has been obtained or at least applied for, the price for the same plot of land could be as much as 200,000. As you can see, location and planning permission makes a huge difference.

Now, keep in mind that finding land such as this is a rare occurrence since most of the larger developers in the UK have already been searching. Even so, PLC companies who have shareholders making demands for rising share prices will consider short-term options. However, these companies are now usually prepared to look at plots of land that would take more than 10 years to gain the needed planning consents. For private developers willing to wait, the benefits could be worthwhile.

You need to understand that gaining planning consent requires a little bit of finesse. The reason is that local authorities and officers have a ton of competing priorities. Because of this, a simple application process could become very complicated, especially if local politics become involved. One solution would be to use a local planning consultant who can work with you in getting the required approval.

For plots of land deep into the country, gaining permission to build is unlikely. Now, if the land is located a good distance from any residential buildings, not accessible except with a dirt track, or miles from any local amenities are especially difficult to gain permission. Additionally, land located near existing housing or areas with good access and future development needs would have a greater chance of gaining planning permission.

Plot of Land

Just as the value of sale for sale is based on a variety of factors, as mentioned above, remember that the plot of land itself could make a difference. For instance, you need to think about the type of home or structure that would be erected on the land. Then, think about the cost of building the home. Finally, once the home is completed, what would its value be?

Many times, a developer will use a specific method of determining the value of land, which is done by working percentages of the value with a completed house, which is then compared to the actual cost of the land. For instance, if the completed house had an expected market value of 200,000, and then vendors are asking an additional 60,000, that means the land value is actually 30%.

Keep in mind that the value of a plot of land will depend not just current market but also location. Even so, 30% for a developer would be deemed normal. In addition, the calculation used would include building costs. Considering most developers use the 30% profit margin, you find there is adequate scope for margin for the minor developer or self-builder.

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