When valuing development sites if the scheme has outline planning as a rule of thumb we initially the value of the site at between 25% and 35% of the GDV (Combined value of the completed Properties).
For example If planning is granted for 4 houses that are going to be worth £250,000 each when built then the site has a GDV of £1m and a value “on paper” of between £250,000 and £350,000. This allows us to set a guide price on the basis that we know developers will be competing to buy the site within these established industry margins – by achieving planning you have reduced their risk and quantified the GDV.
By then selling the site by auction the competitive nature of bidding will allow for the best possible price to be achieved – we often see single plot sites achieving close to 50% GDV – prices that we feel are only possible when selling under auction conditions.
Please find below our guide to the stages and timescales involved with gaining an outline planning scheme.
What is an outline planning application?
An outline planning application establishes the principle of development and is generally a cheaper option than a detailed (full) planning application.
It requires a formal application and relevant fee (based on site area) but the information to be submitted depends on the ‘matters’ that are to be considered and ‘fixed’ for determination. These comprise access, layout, scale, appearance and landscape. Often ‘access’ is fixed, and the others reserved for future consideration as part of a Reserved Matters application (which is effectively the detailed application). Any matters that are fixed at the outline stage cannot be amended at the Reserved Matters stage – only the matters that are ‘reserved’ would need to be considered.
How long does the application process take?
The statutory determination timescale is 8 weeks for a ‘minor’ application (i.e. up to 10 dwellings) but regrettably the process often takes longer due to Council workload/resourcing issues. We can give an indication on likely timescales on a case by case basis, depending on the Council and proposal.