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Land acquisition

Buying land or sites for development, often subject to planning.

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In plain English

Land is worth what can be built on it, minus the cost of building and a profit for the risk. Without planning permission, land is usually worth much less. Look at what the council's plans allow and at constraints like flooding and green belt.

Switch to professional for underwriting detail.

Capital requirements

Land price plus planning, surveys and legal costs; development finance follows planning.

Cost assumptions to budget for

  • Planning application and consultants (transport, ecology, flood)
  • Biodiversity net gain
  • s106 / CIL
  • Site investigations

Potential returns

Planning uplift can be large but is uncertain and slow.

Main risks

  • Planning refusal
  • Access or ransom strips
  • Contamination
  • Utilities capacity
  • Market change during long timescales

Legal checks

  • Title, rights of way, ransom strips, restrictive covenants
  • Option or conditional contract terms

Regulatory checks

  • Local plan policies
  • Biodiversity net gain (10% for most developments in England)
  • Environmental designations

Is it suitable?

Often suits

  • Patient capital with planning expertise

Usually not suitable for

  • Short-term investors

A general guide, not a personal recommendation. Suitability depends on your finances, experience and attitude to risk.

Step-by-step

  1. Search the brownfield register and local plan allocations.
  2. Run constraints checks (Plotlumen report).
  3. Do a residual appraisal.
  4. Take planning advice (pre-application).
  5. Secure land by option or conditional contract where possible.

Financial calculations

Total sale value of the finished units — use sold evidence.

Get a cost consultant or contractor estimate.

SDLT, legal and agent fees on the land.

Development appraisal (residual land value)

Build cost£855,000
Professional fees£85,500
Contingency£64,125
Sales costs£30,000
Build finance (approx.)£52,743
Target profit£240,000
Residual before land costs−£167,368
Maximum land price£0
Land costs and finance£0
  • ⚠ The scheme does not reach the target profit at any land price with these inputs.
  • ⚠ A simplified appraisal. Lenders and valuers use full cashflow appraisals; planning permission is not assumed.

Every figure above comes from the assumptions you entered. This is not a valuation, mortgage offer or financial advice.

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Official sources

Last reviewed 31 Oct 2026. Rules change — check the source before relying on this guide.

Not advice

This guide is general research. It is not legal, tax, financial, planning or investment advice. Speak to a qualified, regulated professional before acting.