Choosing Self-build Building Plots

1. Does it have planning permission?
A building plot is not a building plot without planning permission. Planning permission is required to build all new houses and if the plot of land you are interested in doesn’t have it, then it’s not worth pursuing.

Plots with planning permission are likely to be sold with a set of approved plans – you might see plots advertised ‘with permission for a four bedroom home’, for instance. However, there is absolutely no reason why you cannot re-apply for permission to build the style and size of house you want to – without losing the existing permission. So treat any existing permission as merely a starting point – bearing in mind that most sellers of plots will submit plans for a small, uncontroversial scheme in order to get planning approval.

You should also check that the planning permission granted on the plot is still current. Planning permissions currently run out after five years (usually three, but it has been extended temporarily as of winter 2009). There is no guarantee that an extant planning approval can easily be re-won.

2. What are the hidden costs of development?
A simple assessment of the plot can yield interesting information that might have an influence on how expensive it will be to develop. Does it have services to the plot or close by? Ideally, the plot will come with the key services – water, electricity and gas – already channelled to the site; or they will be available close by. If the plot is in a more rural area, then you will have to pay extra to connect to the mains services which might be 10s or 100s of metres away. It might even be more prudent to consider off-grid options.

A heavily sloping site can also increase foundation costs. According to Mark Brinkley, author of The Housebuilder’s Bible, every degree of slope adds £1,500 to your build costs.

3. Things for your conveyancer to check
It’s important to hire a good solicitor with experience in the specific issues that buyers of building plots will face. Despite the lack of required structural surveys, buying a plot requires close attention to ensure you, the potential self-builder, has the right and potential to build your dream home.

The existence of planning permission does not mean that you are necessarily able to build your dream home. A plot may be subject, in the worst case, to a restrictive covenant (a legal agreement that is specific to the site) that might restrict development to a single storey or, even worse, forbid it altogether. This type of arrangement is not uncommon with garden plots, where former owners and new neighbours try to have a say on which type of house they are going to end up living next door to.

Your conveyancer should also check for issues pertaining to rights of access and any potential rights of way across your plot, in addition to evidence of any wayleaves or easements.

4. Is the price right?
You should be able to independently work out the value of the plot – simply establish the end value of the house you intend to build (the agent selling the plot should help with this), subtract the expected build costs (work them out here) and another 20% margin (for profit/contingency) and you will have the value.

The period 2008-10 has seen a rise in extra development costs added to individual plots either in the form of Section 106 agreements, the Community Infrastructure Levy, or both. Establish if the site is subject to any of these costs and use them as a negotiating point.

FURTHER READING

• In Focus: Planning
• Buying at Auction: A Complete Guide
• How to Assess a Building Plot Part One
• How to Find and Buy a Building Plot