HOW TO FIND A PLOT
PART 10: ASSESSING PLANNING POTENTIAL
Last month we offered a broad overview of the plot buying process, now we’re focusing on the details, starting with the vital job of assessing your plot’s potential
by Mark Stevenson
IMAGE: GETTY IMAGES
Last month I explained how to buy a building plot and went on to set out the process that should be followed to make sure you don’t buy a dud. Over the next few months I’ll be offering a more detailed look at key aspects of plot appraisal, with the goal of laying out the correct method for working out what a plot is really worth.
For whatever reason, over-enthusiastic plot buyers tend to skip over the appraisal stage. This can result in them overpaying for land that then throws up unexpected technical challenges, or worse, has planning complications that stand in the way of the hapless self-builder building their dream home. Carrying out a comprehensive plot appraisal is therefore vitally important if you are to secure an appropriate piece of developable land for a reasonable price. This process has three main steps:
• assessing planning potential
• assessing construction risks
• calculating the plot’s value based on your findings.
This month we’ll be looking at the first of these points.
Land will either come with a consent in place or it will need planning permission to be secured — we covered how to buy land without planning permission in some detail last month. While existing consents offer less planning risk, they are not without their potential pitfalls. There is a question regarding whether the approved design will suit your needs, and the answer will not always be obvious. Therefore, in both cases, it’s a good idea to have a planning professional look over things.
SERIES GUIDE
This extensive series will cover everything you need to know to get the land you need to build the home you always imagined, from assessing a plot’s potential to paying the right price!
LAND WITHOUT PLANNING CONSENT
Failure to win planning consent is one of the most common setbacks leading to promising pieces of land failing to become building plots, so it’s worth hedging your bets. Make no mistake, buying land without planning approval is risky, as there’s no certainty you’ll get permission for what you want to build. However, that doesn’t mean you should simply walk away. Rather, my overriding advice on this topic is that you should never buy a plot without consent when you could secure an option to purchase instead. This will allow you to get an approval in place before handing over your money.
Once you’ve secured your option, then you can begin to plan for risks, a process that starts with a thorough planning appraisal. Appraisals manage planning risk and are the early warning system to avoid plots that will never be approved. A planner carrying out an appraisal will consider a plot’s planning history as well as the constraints imposed by its physical geography and planning policy (both local and national).
The appraisal covers land designation which, in brief, determines the likelihood of consent. One important designation is whether or not the land is within the settlement boundary (a planning tool reflecting where a set of policies are to be applied). Ideally, the land you want to buy should be located within the boundary, but if it is not, a justifiable policy reason is required for why it could be developed, for example meeting local housing need.
The planner will also consider the suitability of the plans in context of the surrounding environment. While you might be keen on certain features, the planner will be focussed on the impact the design will have in terms of scale, mass and how it will fit into the street scene.