It is well documented that a planning consent can increase the market value of a site. That value can be considered academic until the site sells and cash is in the bank.
Securing planning permission sets an important precedent, it acknowledges that the local authority supports the principal of development. How much it will increase the land value by depends on several factors e.g. its location, local demand, the type of consent and the scale of the proposed development.
Much of our current workload is assisting clients unlock the potential of their land. Many of these clients go on to build property for their own use, others have sold their sites once consent was achieved.
With so much emphasis placed on securing planning permission it may be worth considering why some consented sites do not sell? We all know of such development plots. Planning is granted, land searches throw up no onerous charges on the freehold, it is well located in an area of high demand, it may even be on a premiere road with no access issues. All the ducks are in a row. Or are they? What is sometimes overlooked are issues around the quality of the consented design.
Over the years T-Space has been approached by enthusiastic buyers with available funds and a consented site in mind. They love the location but the emotional connection with the design intent is missing, hence the reason they are in contact. Potential buyers may not know how to realise good design, but they definitely recognise it. It is not unusual for clients to experience a visceral response. We all do it – think with our head but make decisions with our heart, especially where potential homes are concerned. The thought of revisiting planning with an alternative scheme makes them nervous; why pay a premium for a site with consent and still have to address planning.
In our experience intelligent and beautifully resolved schemes have a faster turnover - even when being sold off plan. Good design sells. T-Space will consider the end user, aesthetics, context and policy with a view to maximising land value and hopefully culminating in a decision of the heart.
Do you have a site that you would like us to consider? If yes get in contact.
Link to development site featured in this blog here.
Michelle Gibbons, is Managing Director at T-Space Architects.