What is the difference between selling with and without planning?
Planning permission is usually the single biggest step in land value. Land with permission for homes is normally worth far more than the same land without it, because the main risk has gone. The real question is who takes that risk, who pays for it and who benefits when it succeeds.
If you obtain permission first, you carry the cost and the risk of refusal but keep more of the uplift. If you sell without it, the buyer carries the cost and the risk, and the price or the deal structure reflects that. Neither approach is right for everyone; it depends on your timescale, your appetite for risk and the site itself.
What does selling with planning permission involve?
You appoint an architect and planning consultant, commission surveys, submit the application and deal with the council, consultees and neighbours. Statutory decision periods in England are 8 weeks for minor applications and 13 weeks for major ones. In Wales, most applications have an eight-week period. In both countries the period can be extended by agreement, and pre-application advice, surveys and section 106 negotiations add time.
Once granted, a permission has a limited life. A full permission must usually be started within three years in England and five years in Wales, unless the decision says otherwise. For outline permission, reserved matters must be applied for within three years; development must then begin within two years of final approval in England, or by the later of five years from the grant or two years from final approval in Wales.
A buyer will check the conditions, section 106 obligations and any Community Infrastructure Levy liability, because they all affect value. A permission for a scheme that developers cannot build profitably may add less than you expect.
You will also need to choose between outline and full permission. Outline establishes the principle and is cheaper to obtain, but leaves design details to a later reserved matters application. Full permission gives more certainty but costs more upfront, and the scheme you design may not match what the eventual buyer wants to build.
What does selling without planning involve?
You sell the land as it is, and the buyer takes on the planning work. There are three main ways to do it:
- Outright purchase: the buyer pays an agreed price and completes without waiting for planning. You get certainty and speed; the price reflects the planning risk the buyer takes on.
- Subject-to-planning (conditional) contract: contracts are exchanged now, and the sale completes only if a satisfactory permission is granted. See conditional contracts explained.
- Option agreement: the buyer pays for the right to buy within a set period, usually at market value with planning less an agreed discount and costs. See option agreements explained.
A fourth route, a joint venture, lets you share in the development profit in return for taking on some of the risk and waiting longer to be paid.
Who pays for the planning application?
If you apply yourself, you pay: application fees, drawings, surveys, consultants and, if permission is refused, the cost of any appeal. These costs are at risk, and you will not get them back if the answer is no.
Under a conditional contract or an option, the buyer normally pays for the application and the reports. Under an option, those costs are often deducted from the final price, so the agreement should define exactly which costs can be recovered and cap them. Under a joint venture, the developer usually funds the costs and recovers them from the project before profit is shared.
A buyer does not need to own your land to apply for planning permission. It must notify you as owner and complete the correct ownership certificate on the application form, so you will know an application has been made.
How do time, risk and cost compare?
| Route | Your upfront cost | Planning risk | When you are paid |
|---|---|---|---|
| Get planning, then sell | You fund the application | Yours | After permission and a sale |
| Outright sale without planning | Your legal fees | Buyer's | On completion, usually soonest |
| Subject-to-planning contract | Usually legal fees only | Buyer's, but you wait | On completion after permission |
| Option agreement | Legal fees, often met by the buyer | Buyer's, but you wait | Premium now, price on exercise |
| Joint venture | You contribute the land | Shared | As homes are sold |
None of these routes guarantees a result. Planning can be refused, markets move, and conditional deals can end at the longstop date without completing. The table is a general comparison only; the actual costs, risks and timing depend on the terms you negotiate and on the site itself, so read each offer carefully and ask your advisers to compare them on the same basis.
What happens if planning is refused?
The applicant can appeal. In England, most planning appeals must be made within six months of the decision notice, or 12 weeks for householder and minor commercial applications, and they are decided by the Planning Inspectorate. In Wales, the limit is also six months for most appeals and 12 weeks for householder appeals, and appeals are handled by Planning and Environment Decisions Wales.
A refusal does not always end the matter. Sometimes a revised scheme resolves the council's concerns, and land with a lapsed or refused planning history can still interest buyers who think a different approach will succeed.
Which route suits you?
- Getting planning yourself may suit you if you have time, money you can afford to risk and a site with clear policy support.
- An outright sale suits you if certainty and speed matter more than the highest possible figure.
- A conditional contract suits a site where permission looks achievable in the short to medium term.
- An option suits larger or longer-term land that needs promoting through the local plan.
- A joint venture suits owners who want a share of the profit and can accept a longer wait and more risk.
We buy through all four routes, with or without planning, subject to survey, title and contract. You can compare them on our how we buy page. Take independent legal and tax advice before you decide, because the route can change how and when your proceeds are taxed.
What should you have ready before speaking to buyers?
Whichever route you choose, a little preparation makes offers quicker and more accurate:
- your title number, or copies of the title register and plan;
- a plan showing the land you want to sell, and any land you plan to keep;
- any planning history, including pre-application advice, refusals and appeals;
- any surveys or reports you already hold, such as ecology, flood or ground reports;
- details of access, private roads and rights of way;
- any tenancies, licences or grazing agreements affecting the land;
- your preferred timescale, and whether you need certainty or would accept a conditional deal.
You do not need everything on this list to ask for an appraisal. If something is missing, a buyer can usually find it or work around it in the early stages.
Questions
Will I always get more if I get planning first?
Not always. Permission normally adds value, but you pay the costs and carry the risk of refusal, and a permission for a scheme developers cannot build profitably may add less than expected. The extra value has to be weighed against the time, cost and risk involved.
How long does a planning permission last?
A full permission usually has to be started within three years in England and five years in Wales, unless the decision notice sets a different period. Outline permissions require reserved matters applications within three years, with different start deadlines in England and Wales after that.
Can a developer apply for planning on my land before buying it?
Yes. You do not need to own land to apply for planning permission, but the applicant must notify the owner and complete an ownership certificate. In practice, a developer will usually only do this under a signed option or conditional contract that protects its investment.
Is selling without planning a bad deal?
No. It suits many landowners who value speed, certainty or avoiding upfront costs, and the price reflects the risk the buyer takes on. Compare offers on their conditions, timing and deductions as well as the headline figure, and take independent advice before agreeing terms.
Sources
- Town and Country Planning Act 1990, section 92 – outline planning permission (legislation.gov.uk)
- Appeals – guidance (GOV.UK)
- What to do if your application is refused or delayed – Wales (Planning Portal)
- Planning and Environment Decisions Wales (GOV.WALES)
This guide is general information, not legal, planning or tax advice. Always take independent professional advice on your own circumstances.