Want to secure the maximum sale price for your land?
You need to keep these three considerations in mind if you want to get the best price for your property.
It is no secret that farming has become increasingly capital and risk intensive. Pressures from cost rises to uncertain government policy are forcing many farmers to consider alternative uses for their land – and selling part or all of it for development is one of them.
Whilst a sale may seem straightforward at first, landholders often discover very early on in the process that the value of their property is constrained by its planning status. Local planning authorities will periodically allocate land for development looking as far ahead as 15 years. And, although it may appear that your parcel is ripe for sale and development, without first securing an allocation in a Local Plan, values may not be as high as you might expect, nor might they be realised as quickly as you would want.
Therefore, to get a practical view of your sale prospects and maximise your property’s value, you should consider the following:
Local Plans are reviewed every 5 years, so it is important to know when this process is going to start and be ready to promote land from an early stage. If not, you could find that you are playing catch up or that you’ve missed the boat entirely, and the next opportunity to secure an allocation isn’t for another 5 years. If you want to find out more, your local council will publish details of when they plan to undertake a review of the Local Plan and what stage it is at.
It is possible, of course, for you as a landowner to promote your own land. However, it is a lengthy and complex process which is difficult to navigate without prior knowledge and experience, as well as involving a substantial resource commitment. Partnering with a property developer with a proven track record, who can advise on the best strategy to secure an allocation, will often be more efficient and improve the likelihood of success.
In some cases, the local authority may not be able to demonstrate a 5-year housing land supply, and this could provide an opportunity to bring forward a planning application on land that is not allocated in the Local Plan earlier than might otherwise be the case. However, 5-year housing land supply can be a complex and rapidly changing affair, and even when there is a clear shortfall it does not mean that planning permission will necessarily be granted.
Long term strategies
Even if you time things right to engage in the process from an early stage, it will take several years for a Local Plan to be adopted, so it is rarely possible to achieve a land allocation and subsequent sale for an enhanced value within a matter of months.
It is also important to ensure that land is promoted for a use which it is likely to be considered appropriate by the local planning authority in order to maximise the likelihood of securing an allocation. A long-term view (in years) and a clear understanding of the realistic planning potential of any particular land parcel is therefore essential.
The same is true for planning applications, whether detailed or outline, with local authority resource constraints having a marked impact on the speed of decision-making, particularly in sensitive rural locations.
Right development partner
Given the time scales and complexity of the Local Plan process, including policy matters and planning guidance, it is crucial to enlist the help of people with the right expertise, track record and resources to support your land promotion and sale. The earlier you engage with a partner, the more likely it is you will put your site forward at the right time.
It is particularly useful if the developer you are working with has good working knowledge of all property sectors – residential, commercial and industrial. This will enable them to provide the optimum development plan for your land, to best satisfy both market demand and your sale expectations.
This approach is risk-free for you as the landowner as usually all costs are covered by the development partner but gains on securing planning consent are shared disproportionally to your benefit.
Working with Godwin
At Godwin Developments we are very well positioned to help farmers meet the challenges of land promotion and secure great outcomes for their land. Our company benefits from in-house planning expertise, an in-depth understanding of the planning system and timings, significant financial resources, and expertise across residential, commercial and industrial development. This competence coupled with established relationships with various investors and end users make us a strong and reliable partner. Our team can work with parcels from as small as one acre nationwide and tailor agreements to each landowner depending on specific circumstances offering maximum flexibility.
Godwin promise quick decision-making to handle the process from start to finish and make land work for you.
You can contact us for a further confidential, no-obligation discussion on on 0121 516 9508 or email us at [email protected]. Our team will also be at the Farm Business Innovation Show at stand FM352 taking place at The NEC between 2-3rd of November.