When James and Emily started searching for their dream home, they quickly grew frustrated with what they found on the market. Every property seemed too small, expensive, or in a different location. After months of searching, they stumbled upon a solution they had yet to consider: buying land with planning permission. The idea of designing their own home from scratch, on a plot of land they could shape to their needs, felt empowering. The couple soon found a beautiful piece of land in a quiet countryside village—complete with planning permission to build their dream home. As they watched the foundation of their future home being laid, they realized they had made the right choice.
For many people like James and Emily, purchasing land for sale with planning permission opens the door to new opportunities. It can be an exciting journey toward creating a tailor-made home or development. However, considering many factors, buying land with planning permission can also be complex. This article will guide you through the process and provide insights into the benefits, potential challenges, and current market trends, all supported by statistics and expert sources.
What Does “Land with Planning Permission” Mean?
When land is sold with planning permission, the local planning authority has already approved for specific types of development or construction on the property. In the UK, for example, planning permission is required for most building projects, including new homes, commercial developments, and significant alterations to existing properties.
There are two types of planning permissions:
- Outline Planning Permission (OPP): This provides approval in principle for development but doesn’t include specific details about the project. It allows buyers to ensure that a type of development is acceptable before submitting detailed designs.
- Complete (or Detailed) Planning Permission: This permission includes the complete development specifics, such as architectural designs, building heights, and materials, and gives the go-ahead to begin construction.
According to a report by the Royal Town Planning Institute (RTPI), over 90% of planning applications in the UK are approved, although some projects may face restrictions or conditions (Source: RTPI).
The Benefits of Buying Land with Planning Permission
- Greater Control Over the Design
One of the main advantages of purchasing land with planning permission is the ability to customize your property. Instead of compromising on a pre-built home, you can create a layout that suits your needs, whether a modern, eco-friendly home or a traditional countryside cottage. For developers, this also means the flexibility to construct housing developments that cater to current market demands.
A study by Building Design magazine found that 62% of homebuyers would prefer to design their own homes if given the opportunity (Source: Building Design).
- Potential for Financial Gain
Land with planning permission is generally more valuable than land without it. For investors, this can provide a lucrative opportunity. According to the Land and Property Review 2022, land values can increase by up to 60% once planning permission has been granted (Source: Land and Property Review). Buying land with planning permission allows you to bypass the lengthy and often uncertain process of obtaining approval, enabling faster development and potential profits.
For example, a plot of land purchased for £100,000 without planning permission could be worth over £160,000 once approval is granted, depending on the area and demand.
- Fewer Risks and Delays
Many legal and regulatory hurdles have been cleared when land already has planning permission. This reduces the risk of purchasing land where development may be restricted or refused. For many buyers, avoiding the potential for lengthy appeals and costly resubmissions is a crucial selling point.
A report by the Planning Portal, an online planning application service, shows that the average time to get full planning permission in the UK is 8-13 weeks (Source: Planning Portal). Purchasing land with planning permission can save months of waiting, allowing you to start building immediately.
Market Trends for Land with Planning Permission
- Increasing Demand for Land
As housing shortages continue in many countries, the demand land for sale with planning permission has risen. According to the National Housing Federation, the UK alone must build at least 340,000 new homes annually to meet demand (Source: NHF). This demand extends to both urban and rural areas, with developers and private buyers competing for prime plots of land.
Similarly, in the United States, Zillow reports a 30% increase in searches for undeveloped land since 2020, with many buyers seeking out land to build custom homes in less populated areas due to the COVID-19 pandemic and the growing trend of remote work (Source: Zillow).
- Rising Prices
The growing demand for land with planning permission has increased prices in many regions. A Valuation Office Agency (VOA) study revealed that the UK’s average cost of land with planning permission increased by 6% in 2023, with prime locations experiencing even steeper increases (Source: VOA).
This trend means that for buyers, acting quickly can be essential to securing a desirable plot at a reasonable price. However, it’s also important to be mindful of market fluctuations and potential overvaluation.
Things to Consider When Buying Land with Planning Permission
- Costs Beyond the Land Purchase
While buying land with planning permission might seem straightforward, many hidden costs must be considered. For example:
- Infrastructure Costs: Does the land have access to essential services like water, electricity, and sewage systems? If not, adding these can be expensive, often ranging from £5,000 to £15,000 per utility connection, depending on the location (Source: Self Build Portal).
- Development Costs: The cost of constructing a house can vary widely based on the size, materials, and design. According to the Homebuilding & Renovating magazine, the average price of building a home in the UK is around £1,750 per square meter (Source: Homebuilding & Renovating).
- Legal and Surveying Fees: Surveying the land, ensuring clear title deeds, and obtaining necessary insurance can add to your overall budget.
- Planning Conditions and Restrictions
Even if the land comes with planning permission, conditions may apply. For example, local authorities might require that certain materials be used to match the surrounding architecture or impose restrictions on the size or height of the development. Failing to meet these requirements could result in legal challenges or costly redesigns.
In a 2022 survey by the Federation of Master Builders (FMB), 29% of developers reported facing delays due to unexpected planning conditions or restrictions, highlighting the importance of fully understanding the terms of your planning permission (Source: FMB).
- Location and Resale Value
Location is critical when purchasing land with planning permission. A well-situated plot can offer significant returns on investment, while land in less desirable areas may need help to appreciate. Proximity to schools, public transportation, and commercial centers can all impact both the initial purchase price and the eventual resale value of the property.
Stat Fact: According to Rightmove, land within 1 mile of a well-rated school can increase prices by as much as 20% compared to similar plots farther away (Source: Rightmove).
Conclusion:
Is Buying Land with Planning Permission Right for You?
Buying land with planning permission offers a unique opportunity for those looking to build their dream home or invest in property development. It allows buyers to avoid the uncertainty of the planning process, provides greater control over design and development, and can lead to significant financial returns. However, as with any major investment, it’s essential to approach the process with careful planning and a clear understanding of the costs, legal requirements, and market conditions involved.
Just as James and Emily discovered, the right plot of land can be the key to creating a home that meets all your needs. With a clear vision, advice, and a well-chosen piece of land, you can turn your dream home into a reality
