How we assess development land
How do we assess development land?
We assess land by working out what could realistically be built, what it would cost to deliver and what the finished homes would be worth. The difference, after an allowance for risk and return, is what a developer can pay for the land. This is known as a residual approach.
Read the full guide: how developers value development land.
What affects the value of my land?
- The scheme: how many homes, of what type, could reasonably fit.
- Planning obligations: affordable housing, Section 106 contributions and any Community Infrastructure Levy.
- Abnormal costs: access works, drainage, contamination, demolition, ecology and utilities.
- Planning risk and time: land with permission is worth more than land without, because uncertainty and time cost money.
- Local values: what new homes sell for in the area.
Will you show me how you reached your offer?
Yes. We explain the main assumptions behind any offer. You should still take independent valuation advice, particularly on option agreements where the price is set later by a formula.
Questions
How much will you pay for my land?
Every site is valued individually, based on what could be built, the costs and the planning position. We put any offer in writing and explain how we reached it.
Do I have to pay you anything?
No. Our appraisal is free and we never charge landowners a fee. On option agreements we also pay your reasonable legal costs, up to a cap agreed in the heads of terms. Under options and joint ventures, agreed planning and promotion costs may be recovered from the price or proceeds; any recovery is capped and set out in the heads of terms.