If you own a piece of land, a large garden, an unused building or even an awkward parcel of ground that has never really served much purpose, you may have wondered whether it could be developed.
It is a perfectly reasonable question, although the answer is rarely as simple as looking at the size of the site or checking whether somebody has built on nearby land.
Development potential is determined by a combination of planning policy, location, access, physical constraints and commercial viability. Some of these factors will be immediately apparent, while others require considerably more investigation.
A site that looks promising at first glance can sometimes have constraints that make development difficult. Equally, land that has been overlooked for years may have potential that its owner has never considered.
Understanding the difference starts with looking at the site properly.
What does ‘development potential’ actually mean?
In simple terms, land has development potential when there is a realistic possibility that it could support a different or more intensive use.
For many landowners, that means residential development, although development opportunities can also include commercial uses, conversion of existing buildings, redevelopment or a combination of uses.
Importantly, development potential does not necessarily mean that planning permission would be granted today.
There can be different degrees of potential.
A site might have a relatively clear route towards development, while another may depend on future changes to planning policy, allocation through a Local Plan or changes in the surrounding area.
That distinction matters when considering both the value of land and what to do with it.
What do we look at when assessing land?
There is no single test that determines whether a site is suitable for development.
Instead, a number of factors need to be considered together.
1. Location and surrounding development
Where the land is located is usually one of the first considerations.
Land within or adjoining an established settlement may be viewed very differently from an isolated site in open countryside. Existing development surrounding a site can also influence how naturally further development might fit into the area.
This doesn’t mean that land outside a town or village automatically has no potential. Planning policy is considerably more nuanced than that.
The important question is how the site relates to its surroundings and how that relationship fits with current and emerging planning policy.
Recent development nearby can sometimes provide useful context, although it should never be assumed that because one site received permission, another will too.
2. Planning policy
The planning position is fundamental to understanding a site’s prospects.
Local authorities prepare Local Plans that establish where and how development should take place. These can identify land for future housing, employment and other uses, while also setting policies that affect development elsewhere.
National planning policy also plays an important role.
When assessing a site, it may therefore be necessary to consider the adopted Local Plan, emerging planning policy, previous applications, nearby planning decisions and any relevant land designations.
Planning policy also changes.
A site that had limited prospects several years ago may deserve another look if the policy environment or circumstances surrounding it have subsequently changed.
This is one reason we would rarely recommend making a long-term judgement about land based solely on an old planning decision.
3. Access and highways
Access is easy to underestimate.
There may be plenty of physical space for development, but that does not necessarily mean there is a suitable way to get vehicles, pedestrians and services safely into and out of the site.
Existing access may need to be widened or improved. Visibility onto the highway may be an issue, while the capacity and character of surrounding roads can also influence what level of development is appropriate.
Sometimes an access issue can be resolved. In other cases, it can fundamentally restrict what can be achieved.
For this reason, a relatively small site with good access can sometimes present a more realistic opportunity than a much larger site where access is problematic.
4. The physical characteristics of the site
The land itself matters too.
A flat, regularly shaped site will usually present different challenges from steeply sloping or unusually shaped land.
Among the physical considerations that may need investigating are:
• Topography
• Site shape
• Ground conditions
• Existing buildings
• Trees and vegetation
• Drainage
• Watercourses
• Existing boundaries
• Contamination
• Previous uses
None of these should automatically be viewed as reasons why development cannot happen.
They are simply part of understanding what is realistically achievable and what developing the site may cost.
5. Flood risk and drainage
Flooding and drainage can have a major influence on development.
A site may be affected by river flooding, surface water or other drainage considerations, and the level of risk can affect both the type of development that might be acceptable and the technical work required to support a planning application.
Again, the presence of flood risk does not necessarily mean that development is impossible.
It does mean that it needs to be understood properly.
6. Ecology, trees and the natural environment
Land that appears empty to us isn’t necessarily empty from a planning perspective.
Habitats, protected species, mature trees, hedgerows and other ecological features can influence how a site is designed and, in some circumstances, whether development is appropriate at all.
Environmental considerations have also become increasingly important within the planning process.
Early investigation can help identify these issues before significant time and money are committed to pursuing a particular development strategy.
7. Utilities and infrastructure
New development needs to function.
That means considering electricity, water, drainage and other infrastructure alongside the physical development itself.
For larger sites in particular, infrastructure requirements can have a significant effect on both viability and the amount of land that can actually be developed.
A five-acre site, for example, should not automatically be valued on the assumption that all five acres could accommodate saleable development.
Roads, drainage, landscaping, open space and other infrastructure may all need to be accommodated.
Planning potential and commercial viability are not the same thing
This is an important distinction.
A site may technically have a route towards planning permission while still being unattractive commercially.
Developers have to consider what the completed scheme is likely to be worth against the cost and risk involved in delivering it.
Construction costs, infrastructure, abnormal ground conditions, planning obligations, affordable housing requirements, professional fees and finance can all affect the amount a developer can reasonably pay for land.
This is why understanding development potential should involve more than asking:
“Could something be built here?”
The better question is:
“What could realistically be built here, what would be involved in delivering it, and would the resulting development make commercial sense?”
That provides a much more meaningful basis for understanding the land.
Does land need planning permission to have development value?
No.
Land can have development potential before planning permission has been granted, although the level of certainty surrounding that potential can have a substantial influence on its value.
There are also different ways for a landowner to approach this.
Depending on the circumstances, land might be sold in its existing condition, sold subject to planning, promoted through the planning system or dealt with through an option or promotion agreement.
Obtaining planning permission yourself is therefore not automatically the best route.
The appropriate strategy depends on the site, the owner’s objectives, the likely costs and the level of planning risk involved.
Understanding those options before committing to one of them can be extremely important.
Could agricultural land have development potential?
Potentially, yes, although agricultural land should never be assumed to be suitable simply because it sits near existing housing.
Its relationship with a settlement, planning policy, landscape considerations, access, agricultural land quality and environmental constraints may all be relevant.
Some agricultural sites may have little realistic prospect of development under current policy.
Others may become strategically important as towns and villages evolve or Local Plans identify the need for additional land.
This is where the difference between immediate development potential and strategic land becomes particularly important.
What about large gardens and land around existing homes?
Development opportunities aren’t restricted to fields.
Large residential plots can sometimes contain land capable of accommodating another dwelling or small development, particularly where there is suitable access.
Corner plots, side gardens, land behind existing properties and unusually deep gardens can all be worth considering.
There are, however, plenty of circumstances where development would be inappropriate.
The effect on neighbouring properties, local character, access, parking, trees and the pattern of existing development can all influence the planning position.
The fact that there appears to be enough physical space for another house is only the beginning of the assessment.
Can previously refused land ever become developable?
Potentially.
A planning refusal tells you why a particular proposal was considered unacceptable at a particular point in time.
It doesn’t necessarily establish that nothing could ever be developed on the land.
A different proposal may address the reasons for refusal, while planning policy, housing requirements or the surrounding area may change over time.
Previous applications are extremely useful when assessing a site because they help reveal the issues a local authority has already considered.
They should be understood rather than simply viewed as a permanent yes or no.
What if a developer has already approached me?
An unsolicited approach from a developer is often a good reason to understand your land before agreeing to anything.
Developers actively search for potential sites and may have already investigated the planning position before contacting an owner.
That doesn’t mean an offer is necessarily inappropriate. It does mean you should understand why they are interested and what your options are before making a decision.
The headline figure offered for land is only one consideration. The conditions attached to the offer, planning risk, timescale and structure of the agreement can be equally important.
Independent advice at this stage can help you make that decision with a much clearer understanding of the site.
How can I find out if my land has development potential?
An initial assessment does not always require an expensive planning application or months of technical work.
The sensible starting point is usually a preliminary review of the site and its circumstances.
This can include looking at its location, planning history, relevant planning policy, access, neighbouring development and obvious constraints.
If that initial assessment suggests there is an opportunity worth pursuing, more detailed work can follow.
The important thing is to avoid spending significant sums before establishing whether there is a credible route forward.
Don’t assume. Assess.
Some of the most interesting land opportunities aren’t immediately obvious.
Equally, not every field, garden or vacant site has hidden development value.
The purpose of a good initial assessment is not to tell every landowner that their site can be developed. It is to establish what is realistic, identify the issues that matter and help the owner understand the options available to them.
If you own land, a large garden, redundant buildings or property that you believe may have development potential, Acresfield Land Agents can take an initial look and discuss what the next steps might be.
There is no obligation to proceed. Sometimes simply understanding the position is valuable in itself.
Acresfield Land Agents
0333 052 7940
www.acresfieldlandagents.co.uk
