SHOULD I GET PLANNING PERMISSION BEFORE SELLING PART OF MY GARDEN?
Planning permission, garden land and choosing the right point to sell
If you are considering selling part of your garden for development, one of the most important decisions is whether to obtain planning permission before putting the land on the market.
You do not necessarily need planning permission to sell garden land.
However, a purchaser without planning permission is buying land where the development potential remains uncertain. They may therefore discount the price to reflect the cost, time and risk involved in securing consent.
Obtaining planning permission can reduce that uncertainty and potentially make the land more attractive and valuable.
But pursuing permission also involves cost and risk.
The right approach depends on the strength of the development opportunity, how much value greater planning certainty might create and how quickly you want to sell.
CAN I SELL PART OF MY GARDEN WITHOUT PLANNING PERMISSION?
Potentially, yes.
Garden land can be sold without first obtaining permission for a new house.
However, without planning permission, the purchaser needs to determine whether development is possible and take the associated planning risk.
The land may therefore be viewed as land with development potential rather than an established building plot.
That distinction can affect both the number of potential purchasers and what they are prepared to pay.
DOES PLANNING PERMISSION INCREASE THE VALUE OF GARDEN LAND?
It can.
Planning permission can demonstrate that the land is capable of accommodating a particular development.
This removes some of the uncertainty facing a purchaser.
For example, there is an important difference between:
a large side garden that might accommodate a house
and
a defined plot with planning permission for a new house.
The second provides much greater information about what can actually be developed.
However, there is no standard percentage by which planning permission increases land value.
The value created depends on the particular development and its commercial viability.
WHY WOULD A DEVELOPER BUY MY GARDEN WITHOUT PLANNING PERMISSION?
Because they may believe they can create value by obtaining planning permission themselves.
A developer might identify a large garden, side plot or backland site and approach the owner before planning permission exists.
The developer is effectively taking a view on:
What might be built
The likelihood of obtaining permission
The likely value of the completed development
The cost of securing planning permission
Construction and infrastructure costs
The risk involved
If they are taking significant planning risk, that is likely to influence the amount they are prepared to pay.
This is one reason landowners should understand the development potential of their property before agreeing terms.
SHOULD I GET FULL PLANNING PERMISSION BEFORE SELLING?
Not necessarily.
Full planning permission is one way of creating certainty, but it is not always necessary to take the site all the way through the planning process before selling.
Depending on the circumstances, the strategy might involve:
Initial planning feasibility
An indicative development layout
Pre-application advice
Establishing the principle of development through an appropriate planning route
A detailed planning application
The right level of work depends on the site and what you are trying to achieve.
The objective should be to determine how much additional planning certainty is worth paying for.
WHAT SHOULD I CHECK BEFORE SPENDING MONEY ON A PLANNING APPLICATION?
Before commissioning a full set of drawings and technical reports, establish whether the development proposition appears credible.
For garden land, this might include considering:
Planning policy
Local character
Site dimensions
Access
Neighbouring properties
Trees
Ecology
Flood risk and drainage
Parking
Planning history
Comparable nearby development
This initial work can reveal whether the site appears capable of supporting development and what form that development might take.
It can also identify issues that need resolving before substantial money is committed.
HOW MUCH SHOULD I SPEND TRYING TO GET PLANNING PERMISSION?
That should be proportionate to the opportunity.
If the potential development could create substantial additional value, investing in planning and technical work may be commercially sensible.
But expenditure should generally increase as confidence in the development opportunity increases.
For example:
Initial planning assessment
↓
Development capacity established
↓
Indicative design
↓
Key technical risks investigated
↓
Planning strategy confirmed
↓
Planning application
This staged approach reduces the risk of spending significant money before fundamental problems have been identified.
SHOULD I GET PLANNING PERMISSION FOR ONE HOUSE OR TEST A LARGER DEVELOPMENT?
This is an important question for larger gardens.
Obtaining permission for one house may create a valuable building plot.
But if the wider site could realistically accommodate two or more homes, the position of the first dwelling, its garden and its access could restrict future development.
Before fixing a scheme, it can therefore be sensible to consider the development capacity of the whole property.
You may ultimately decide to pursue only one dwelling.
But that decision is stronger if it has been made with an understanding of the wider opportunity.
COULD I SELL THE LAND SUBJECT TO PLANNING?
Potentially.
Rather than obtaining planning permission yourself or selling the land unconditionally without permission, a transaction can sometimes be structured around a future planning outcome.
This might involve a conditional contract, option or promotion arrangement.
The purchaser or promoter may then take responsibility for some or all of the planning process.
These arrangements can reduce the amount the landowner needs to spend upfront, but they introduce other commercial and legal considerations.
The terms governing price, planning strategy, costs, timescales and control over the process can be particularly important.
Specialist legal and valuation advice should be obtained before entering into such an arrangement.
WHAT IF A DEVELOPER HAS ALREADY OFFERED TO BUY PART OF MY GARDEN?
An unsolicited approach can be a useful indication that somebody sees development potential in the land.
But before accepting an offer, it is worth understanding why they want it.
The developer may have already considered:
Planning policy
Nearby planning permissions
Access
Potential development capacity
Likely house values
The landowner should ideally have some understanding of the same issues.
This does not necessarily mean obtaining planning permission before negotiating.
Even an independent feasibility assessment can provide useful information about what the site might be capable of accommodating.
WILL PLANNING PERMISSION GUARANTEE A HIGHER SALE PRICE?
No.
Planning permission can reduce uncertainty, but the value of the land still depends on the quality and commercial attractiveness of the development permitted.
A purchaser will consider whether the scheme is actually deliverable.
A permission could be less attractive if it involves:
Expensive construction
Significant infrastructure
Difficult access
Complex drainage
Extensive planning requirements
An inefficient site layout
Homes poorly suited to the local market
The aim should therefore not simply be to get a planning permission.
It should be to establish a permission for a development that somebody is likely to want to deliver.
WHAT IF PLANNING PERMISSION IS REFUSED?
This is part of the risk of pursuing permission before selling.
A refusal does not necessarily mean the site has no development potential.
Depending on the reasons, it may be possible to:
Amend the proposal
Reduce the scale of development
Change the design
Provide additional evidence
Submit a revised application
Consider whether an appeal is appropriate
However, a refusal becomes part of the site's planning history.
This is another reason to undertake proportionate feasibility work before submitting an application rather than using the planning process simply to see what happens.
WHEN DOES GETTING PLANNING PERMISSION BEFORE SELLING MAKE SENSE?
It may be worth considering where:
There appears to be a credible development opportunity
Planning risk can be reasonably understood
The potential value uplift is meaningful
You are prepared to fund the planning process
There is no immediate requirement to sell
Greater certainty is likely to improve marketability
Selling earlier might make more sense where planning is highly uncertain, the required expenditure is disproportionate or speed is more important than maximising the potential development value.
There is no universal answer.
The decision should be based on the characteristics of the particular site.
WHAT IS THE BEST ROUTE FOR MY GARDEN?
A sensible approach is usually to answer the questions in the right order.
1. Does the garden have credible development potential?
2. What could realistically be built?
3. What are the principal risks and constraints?
4. What might greater planning certainty add to the opportunity?
5. How much would it cost to establish that certainty?
6. Should I pursue planning myself or transfer some of that risk to a purchaser?
Only then does it become possible to make an informed decision about when to sell.
SWAP VIEW
The choice is not simply “planning permission or no planning permission.”
There are different levels of planning certainty, and each involves different levels of expenditure and risk.
For some garden sites, securing permission before sale could be the most effective way of demonstrating and protecting the value of the development opportunity.
For others, the sensible strategy may be to establish the likely development capacity and planning position without taking the site through an expensive application.
The important thing is to understand what additional planning work is likely to create enough additional certainty or value to justify its cost.
That is the point at which planning becomes part of the commercial strategy rather than simply an administrative process.
CONSIDERING SELLING PART OF YOUR GARDEN?
If you have a large garden, side plot or land behind your home and are deciding whether to obtain planning permission before selling, SWAP can help assess the opportunity first.
We can review the planning position, establish what development might realistically be achievable and advise on a proportionate route towards greater planning certainty.
Send us the property address, a plan if you have one, and details of any proposals or offers you have already received.