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.
Stage 1: Scheme Review/Feasibility and Fee Quote
If a planning appraisal has not been provided, we will identify the site’s development potential and advise on a suitable scheme in terms of the amount of development and the site’s layout.
We will agree a fee with you for the work associated with the outline application.
A sketch layout/block plan showing the vehicular access to the site and the number and location of buildings will be prepared. This will either be fixed if layout and access is to be formally considered as part of the application or illustrative if layout and access is to be reserved for future consideration. This will also indicate where soft landscaping (i.e. gardens and other green spaces) would be located.
We will identify any survey/information requirements for the application (such as ecological surveys, coal mining risk assessment, transport input, etc) and obtain quotes on your behalf, and you will then be responsible for paying the consultants’ fees. We will project manage any external consultants appointed and review/comment on the reports.
Stage 2: Preparation and Submission of the Outline Application
When all the items required for the application are complete, including our Planning Statement, we will prepare and submit the planning application on your behalf.
You will be liable for payment of the application fee direct to the Council.
Stage 3: Application Management
We will manage the application process up until determination. We will regularly check the Council’s website for any consultation responses; action them as appropriate; and keep you informed of progress.
If an application needs to be referred to the Committee for a decision, instead of being delegated to officers, we will attend committee on your behalf.
Stage 4: Determination
We will normally agree any necessary conditions before the application is determined to minimise the number of conditions and ensure requirements are not disproportionately onerous.
Any work associated with the discharge of conditions (such as any pre-commencement requirements) is not included as part of the work on the outline application, and will be need to be agreed and charged as an additional fee.
Stage 5: Sell by Public Auction
We can then offer the land for sale by public auction – be part of Bristol and the West Country’s biggest land and property event!
Alternatively if you intend to build out the development why not use our New Homes team?
As part of the Hollis Morgan “Property Cycle” we will refund your buyers premium if you purchase the site through us and then instruct our new homes team!
Start Outline Planning
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