By Paul White, Director of Garness Jones
If you’re sitting on land that can be used for any type of commercial development – be it new housing or for retail or leisure purposes – you could well hold the key to securing a significant amount of income.
However, the journey from making the decision of wanting to sell to getting yourself not just a deal – but the best possible deal – can be a tricky one to navigate, and one which requires specialist knowledge and insight.
At Garness Jones, our team of RICS qualified chartered surveyors have decades of experience advising landowners on securing the best possible deal from a sale, following the global Red Book valuation standards.
When any landowner turns to us for land appraisal and sale, we always ensure we firstly get an understanding of the eligibility of land, and its likeliness to receive commercial development approval, before engaging with any land developers or investors.
Given our experience of development across North Yorkshire, East Yorkshire, and the Humber, particularly in prime investment areas such as Hull, York and their surrounding towns and villages, we have garnered excellent knowledge over the years of the local planning zones and restrictions, and areas which are designated as residential, green belt or industrial under local plans.
Crucially, we also have specialist knowledge of potential issues such as areas marked as flood risk zones, or as conservation areas, and heritage or listed buildings, something which can affect plans in and around York, and part of Hull city centre.
Our team always ensures any potential hurdles are navigated, from valuation to legal, financial, and market complexities.
What is my land currently designated as in terms of development?
Land in the UK is typically designated for one of three uses;
- Employment – This means it’s protected for commercial use such as offices, industrial and warehousing – and so there should be limited restrictions or objections to a sale.
- Residential or Agricultural – A change of use or planning justification may be needed for commercial development.
- Green Belt or open countryside – Development is usually restricted and must follow strict rules.
If your land is allocated for commercial or mixed-use development, you will have a strong case to proceed from the outset.
Our team can advise with regards to what type of development is likely to both secure planning permission, working to steer a smooth path through planning, consultation periods, going to market and sale.
How much does planning permission affect the value of my land for commercial development?
Having planning permission for development before going to market brings massive benefits, as investors and developers are reassured by knowing they will have a “ready to go” site which has less risk and fewer unknowns than one without planning.
Whilst you’ll have to cover the cost of architects, consultants, surveys, application fees – and of course have to keep in mind the application may be rejected – if approved (which should be the case if you’ve had specialist advice), it will significantly increase the price you can go to market at.
A good solution at times is for landowners to partner with potential investors, either by reaching an agreement to apply for planning at their cost, and take a share of uplift when it sells, or by agreeing an option with a developer that they buy the land, only if planning is granted.
What other factors will increase the sale value of my land?
Investors and developers are always looking for land to transform into profitable projects, and at Garness Jones we use our expertise and contacts to ensure vendors receive the best possible offers, and achieve maximum value.
At any one time our team will be handling the sale of large plots of commercial land, offering exciting opportunities for manufacturers, industrial companies and developers to purchase freehold development land.
We also have a track-record of helping people sell residential land, from pockets ideal for small housing developments or as a spot for individual retailers, to sizeable areas of land suitable for hundreds of new homes and larger commercial projects.
Market conditions and demand will of course always be a driving factor on value, so if you are fortunate enough to own a site being eyed by multiple developers, the value will increase.
Other factors such as location, size, infrastructure, access and boundaries, and nearby development and amenities, will also have an impact value.
Is my land suitable for sale for residential development?
Given the Government is presently committed to overhauling the planning system to accelerate housebuilding and deliver 1.5 million new homes over the course of the next few years, there will without doubt be more opportunity to sell land for housing.
Councils are being set targets to meet housing needs, with a new ‘common-sense approach’ introduced to greenbelt land, requiring local authority planning departments to review greenbelt boundaries and identify and prioritise lower quality land for development.
Whilst any development on greenbelt must still meet strict requirements, including developers having to provide the necessary infrastructure for local communities, such as nurseries, GP surgeries and transport, as well as a premium level of social and affordable housing, the door has been opened to more opportunities, both for developers and those looking to sell their land.
How can I negotiate a sale of my land and be sure I’ve got the best price?
Having ensured an accurate valuation based on current market conditions, potential use, comparable sales in the area, and current demand for various types of development, such as residential, leisure, retail, care facilities and industrial, it is important to then target the right potential investors.
This is where our team of Royal Institute of Chartered Surveyors (RICS) qualified experts can add extra value, by offering landowners access to our huge network of contacts, with our team always talking to investors and developers and making them aware of land purchase opportunities.
Many land sales handled by the Garness Jones team go to ‘best bids’, due to the significant interest generated, with deals in recent years including representing a landowner to sell their bungalow and surrounding land in a growing urban village.
In this case we used our contacts to attract a number of bids from interested parties, ultimately agreeing a deal with supermarket Lidl after going to ‘best offer’ on the site.
In another deal for residential land we supported three separate landowners in negotiations with developers which led to the sale of almost five hectares of land for housing, overcoming various complicating factors in the deal.
We also handled the sale of 17 acres of commercial land and properties to Rainham Steel Company, securing a deal close to asking price for our client RMS Trent Ports Limited, as the site had become surplus to requirements for them.
With a track-record of supporting landowners in assessing the value of their land, advising on the best type of development buyer to secure the highest values, working with consultants to steer a smooth path through to sale, and supporting vendors every step of the way, our team can be trusted to help you get maximum value for your land.
