Investors, self-builders and property developers are always on the hunt for land to buy in Hull, the East Riding and the Humber region.
When talking to people with land to sell, we’re often asked one common question:
How much is my land worth to a developer?
As you might expect, it’s not always easy to arrive at the correct value or purchase price but a few helpful pointers can make the process clearer to understand.
The factors which influence value
At Garness Jones, our Chartered Surveyors regularly conduct land valuations for a wide range of purposes – tax, inheritance and compliance.
In our experience, the best way to get an accurate land valuation in Hull or the Humber region is to enlist the help of a professional.
Our team frequently values land for a wide range of commercial purposes and our aim is to deliver the maximum possible return for the land owner, whilst of course balancing this with the need to negotiate a realistic price for the developer too.
When buying or selling land in Yorkshire and Lincolnshire, the value usually depends on a series of common variables.
The 10 biggest factors to affect land value:
- Location
- Nearby land values
- Land availability
- Access & car parking
- Plot Size & Condition
- Service Connectivity - Water, Gas, Electricity, Wi-Fi
- Topography – physical land features
- Surrounding Structures & Buildings
- Environmental Factors
- Economic Activity
Even after considering all of the above, land prices still fluctuate (often quite a lot) depending on other dynamics specific to that sub-location.
No two places are the same. The market in Hull and the East Riding is obviously very different to that of Grimsby and Scunthorpe.
Additional factors to consider:
- Is the plot of interest to anyone else?
- Does it have an unhindered access route?
- Is there an urgency and timescale for completion?
- Are there any previous planning issues?
- Will any Change of Use’ rights be required?
- Does the land have any restrictive covenants or clauses?
To be 100% confident of achieving the right price, we always recommend using an experienced valuation specialist.
Recently, our experts were called upon to help broker a deal between four separate land owners and developers so a 12-acre plot could be transformed into a new residential development.
In a fluctuating market, three of the four landowners asked us to handle the sale on their behalf because of our previous experience and reputation for knowing the market and assessing land values.
If you’d like to discuss this service, call 01482 564564 and chat to our experts.
Does planning permission add value?
Planning permission usually has a direct influence on land value.
In most instances, land is offered for sale in three different ways:
- Subject to planning consent
- Without planning consent
- With planning consent
If it has planning, the general rule of thumb is that it will be worth a lot more than without. Potentially, it could be worth up to ten times more. But the only way to discover true open market value is to put it up for sale.
If you’re selling a piece of land subject to planning approval, the buyer will usually agree to buy and exchange contracts on the condition that consent is secured.
Unfortunately, selling in this manner does come with a certain element of risks.
If you’re selling land in Hull or the Humber area to a developer, bear in mind that they’ll want to pay a price which helps them maximise their potential profit margins.
If your land is subject to any exclusions or covenants, a developer may well say this should lower the price.
Knowing the gross value per acre of your land will allow you to understand if any request to lower the overall price is reasonable.
How much is my land worth to a developer?
Selling and buying land for development always comes with risks – as it could be worth far more than you think.
To successfully negotiate your way through a land sale, we would advise using an experienced Chartered Surveyor so you can tap into their unrivalled insight and expertise.
At Garness Jones, we know the regional property market inside out. Our specialists deal with developers and land owners every day.
When assessing a site’s value, our trusted Surveyors will help you navigate and overcome any obstacles or difficulties.
'How do I know how much my land is worth?'
We’re asked this question a lot – and the honest answer is that every piece of land is different.
Getting a professional valuation is the best way to discover its true worth. Once you know the value, you can then make an informed decision – and of course there’s no obligation to sell.
If you are thinking of selling land, we have contacts at a host of national developers and regional house builders and can often introduce you to serious buyers.
In recent years, we have successfully determined value on a 13.47 acres site at the junction of Boothferry Road and Swanland Road in Hessle and assisted in the sale of a 6.43-acre site at the former East Riding College Site, in Gallows Lane, Beverley.
Our assistance also proved pivotal in developers acquiring the four-acre site at Swanland Nurseries Garden Centre and a 2.6-acre site in Park Lane, Cottingham.
Whether you’ve submitted a planning application or had one refused, our advice can often help you achieve the planning consent required to secure a sale.
Once a buyer has been found, we advise appointing an independent solicitor to act on your behalf during negotiations so that the sale can be conducted legally and transparently.
If you’d like us to conduct a land valuation in Hull and the Humber area, call 01482 564564 for an informal discussion with our experts David Garness and Paul White.
