What Happens After Planning Permission Is Granted?

Receiving planning permission is often a significant milestone for a landowner. In some cases, obtaining consent can increase the value of land substantially and create opportunities that were not previously available. However, many landowners are uncertain about what happens next and whether they should build the site themselves, retain the land or sell to a developer.

One of the first things to understand is that planning permission does not automatically guarantee that a development will be financially viable. Developers will usually assess a range of factors including build costs, access, drainage, ground conditions, finance costs and the likely value of the completed properties. A site with planning permission may still appeal more to certain buyers than others depending on the scale and complexity of the scheme.

Many landowners initially intend to build a site out themselves. However, once planning has been achieved, they sometimes realise that much of the value has already been created through the planning process itself. At that point, selling the land to a developer can become an attractive option, particularly where the owner wishes to avoid construction risk, project management and development finance.

The type of planning permission granted can also influence buyer interest. Full planning permission generally provides greater certainty, while outline permission may leave some matters reserved for later approval. Some developers actively seek sites with outline consent because they may wish to redesign elements of the scheme themselves.

Timing can also be important. Planning permissions are usually granted for a limited period and developers will often review how much time remains before consent expires. In some cases, sites with older or lapsed permissions may still retain significant value where there is a reasonable prospect of reinstating or revising the consent.

Landowners are often surprised by the variety of buyers that may be interested in a consented site. Opportunities may appeal to local developers, self-build buyers, investors or regional housebuilders depending on the size and nature of the project. Smaller sites in established residential areas can sometimes attract particularly strong interest from SME developers seeking manageable opportunities.

At Landbank, we regularly speak with landowners who have recently obtained planning permission and simply want to better understand the value of their site and the options available to them. In many cases, an informal appraisal can help owners decide whether it makes sense to proceed with development themselves or introduce the opportunity to the market.

If you have recently obtained planning permission and would like an informal discussion regarding the possible value of your land, Landbank can provide a free, no obligation appraisal and guidance on the options available.

Photo by Josh Olalde on Unsplash