Is now a good time to sell land to a developer?
Government plans for more house building across England mean this could be a great time to sell land to a developer. Regeneration plans, announced by Housing Secretary Robert Jenrick, will encourage house building in cities and urban centres.
The aim is to bring additional housing to regions where supply does not currently meet the demand. This will have a knock-on effect of boosting the local economy by supporting jobs in the construction industry and revitalising the high street with greater footfall.
The government believes the scheme will particularly help areas struggling to recover from the effects of the COVID-19 pandemic. For people looking to sell land to a developer, this could be the ideal time to take the plunge.
The home building plans have been drawn up following a consultation last summer, when the views of local authorities, planners and the public were invited. The aim is to deliver 300,000 new homes a year by the mid-2020s.
The key will be prioritising brownfield sites and urban areas, while the government is calling on cities to plan for more family homes. Making the most of under-used land and vacant buildings to protect England's green spaces is also a priority.
The government has described building more homes as a matter of social justice. The planning system is also subject to reforms to make it easier to navigate without compromising the current standards of environmental protection, design and quality.
Greater investment in the north and Midlands is also planned, with the government revising the rules on the amount of funding available locally to build new housing. New principles will be established to make sure funding is not concentrated mainly in London and the south.
More than £67 million has been allocated to the West Midlands and Greater Manchester combined authorities to help build new homes on brownfield sites. The funding will be concentrated on areas where housing demand has continued to increase.
In 2019, house building was reaching levels not seen since the boom of 1987. The number of new homes built had increased for seven years in a row.
Following Prime Minister Boris Johnson's pledge to "level up the country" in terms of funding, the government announced a £20 billion investment in housing in its most recent spending review. This included £7.1 billion for the National Home Building Fund.
An increasing trend has seen homeowners with large gardens selling their land to property developers.
In some areas, the demand for land for new housing has never been greater. Builders are desperate for sites, so a freeholder with a good-size plot might be sitting on a substantial money pot.
This could be an ideal time to have a land valuation if you have been considering selling land for development.
The potential profit that can be earned through the sale of a garden can vary, depending on a number of different criteria.
It will be worth more if it is located in a desirable area, particularly an urban area with easy access to existing infrastructure. If your own land matches these specifications, you may be able to sell it for a considerable amount.
If you have a gut feeling your land has the potential for development, it could be worth looking into further. You may be surprised at what kind of site is considered as having potential.
If you own a field in a green belt area, planners will be highly unlikely to approve any development under the guidelines. However, if you own a site filled with rubble in the middle of a town, a housing development is likely to enhance the local area and will have more chance of being approved.
Consult the experts
Your first step should be seeking advice from an industry expert, such as a property developer.
Here at NFC Homes, we have over 30 years of experience and have successfully delivered more than 1,500 new homes and commercial developments.
If you're in possession of land that you'd like to sell, get in touch with our friendly team today for a free, no-obligation quote.