How to Find Off-Market Building Plots and Development Sites
If you're looking for a building plot or a potential development site, there are a number of ways to carry out your search; online search engines, estate agents, property development magazines etc.
The main problem with this approach is that, generally, the sites that you find will already have some form of Planning Approval in place. This means that most of the value of the site has already been unlocked.
If you are looking to maximise profit on a project like this, ideally, you would find a site before
it has Planning Approval.
Land can be worth very little (or sometimes nothing at all) without Planning so finding sites before they have Planning Approval allows you to negotiate a much better price with the owner.
I spend a lot of time driving around looking for potential sites which I can add value to by obtaining Planning Approval
Here are my tips on where to look for sites which might be available before Planning
Derelict Buildings -
Does the building have the potential to be refurbished brought back to life?
Blocks of old Garages or Sheds -
Are these no longer used and may be better suited to a building plot?
Disused Farm Buildings -
Is the buildings suitable for conversion or can it be demolished and a similar building be built in its place?
Large Gardens -
Does the garden have the potential to be split up to create a building plot?
Replacing an Existing House -
Some houses aren't worth keeping in their current state but the site or local area is desirable. Can the house be demolished and replaced? Or is there a small house on a large site which, if demolished, could accommodate more than one house?
Buildings at Risk Register -
The Government publishes a list of buildings which are falling into disrepair. Some of these may be suitable for conversion.
Gap Sites -
These may be sites where buildings have previously stood or awkward shaped parcels of land with no real beneficial use.
Why these sites may currently be liabilities rather than assets
A vacant site or derelict building may be worth nothing and may actually be costing the owner money to maintain it. If you are looking for a building plot, these can be valuable negotiating tools in discussions with owners.
Planning approval can turn it from a liability into an asset.
Maintenance -
Some land and buildings will clearly not be being maintained at all. But some may be costing the owner money through security, grass cutting, utility standing charges etc.
Repairs -
Things like bad weather, burst pipes or vandalism can also incur costs to the owner.
Danger -
If a site or building is a health and safety risk i.e. falling masonry, asbestos or open excavations, and the owner has not made sufficient efforts to ensure that it is secure and doesn't cause a risk to the public, they can be liable for injuries caused on site.
Council Tax or Business Rates -
Unoccupied properties can often be exempt from Council Tax or Business Rates because they aren't habitable but some may still be costing the owner money each month. In some cases, when a property has been unoccupied for a certain length of time, rates can be increased by as much as 200%.
Nuisance -
Derelict buildings can become places where people congregate and can be a source of crime and disorder.
Eyesore -
Derelict buildings and vacant sites can generally become eyesores in the community and can attract dumping and litter if not maintained.
How to find the owner
Once you have identified a site, you must find out who owns it to initiate negotiations.
There are a few methods I use:
Land Registry -
For a fee, the land registry can provide the most up-to-date records of ownership of properties and land.
Neighbours -
Speak to the neighbours. Neighbours can often be the best lead in finding the owner of a site. They can also be very valuable in giving you some of the backstory of the site. They may even go as far as revealing what the owner is like and can give you tips on how to best tailor your approach to them.
Previous Planning Applications -
Applicants and owners can sometimes be found by searching through previous planning applications. Ownership may have changed since the applications were submitted but it's a start.
Companies House -
If there are unoccupied buildings which were previously commercial or, in the case of a derelict farm buildings, the site appears to be part of a farm, using Companies House can identify the directors of the company and their registered addresses. There is no guarantee that the companies registered at the address actually own the site but it can be another piece to the puzzle.
So, how much can Planning Approval add to the value of a site?
The answer is: potentially ifinite.
If the site is worth nothing and currently costing the owner money, the additional value that can be realised through obtaining planning approval can be infinite.
There are too many variables to accurately forecast how much value obtaining planning approval will add but, at the very least, it can be said that it can drastically increase the value enough to warrant giving it serious consideration.
Of course, obtaining planning approval is not a formality and finding the site is just the starting point. You must carry out due diligence on any potential site to establish its suitability for obtaining planning approval.
If you have a potential site that you'd like to discuss, feel free to get in touch.