New Plot(s) for sale.

[DaveNewbie]

I'm always interested in the underlying reasoning for things, but often the simplest things don't seem obvious until you know the reason...
so, if someone has a field for sale that can get basic planning permission, they usually obtain the permission and sell the land with the planning permission as they can charge more for the land with planning permission.

While looking around, I very often see plots of building land available next to each other in the same field.

If the plots are say £60,000 each and there are 2 of them, my question is you don't see the owner selling 2 plots for £60,000 or one plot for £120,000

Does anyone know what this is about, and why it's done this way...

The only thing I can think of is that the local council would make more money from the council tax from two dwellings rather than one. But I don't see how the land owner benefits from it.

All ideas welcomed...

 

[GeoffJ]

Could be the land banking parceling scam. The key is "CAN get basic planing permission". Until the planning permission is granted it is agricultural land and worth around £10K an acre.

 

[bernardgreen]

It can be easier to find two buyers who each can afford £60,000 than to find one buyer who can afford £120,000.

 

[DaveNewbie]

Interesting....
GeoffJ - I should have said 'have got planning permission' most of the ones I've seen clearly state they have permission and what for.
It's just that the option of one big plot doesn't seem to be there for people who love the area, love the plot, but don't want a (potential) neighbouring plot within a few feet of the one you want to buy.
So I'm presuming you CAN offer the price of two, buy both and build in the middle?
Sorry this is all probably so obvious and straightforward to most of you.

 

[charliegolf]

Interesting....
GeoffJ
So I'm presuming you CAN offer the price of two, buy both and build in the middle?

Almost certainly yes, but it depends in the first instance: if the plots have outline planning, the position of each dwelling won't be set out. If the plots have detailed PP, say for a detached 4-bed on each, then the positions will be marked, so the PP will have to be revised. The planners might also have a view on how new houses will be 'sympathetic' to their surroundings.

 

[chappers]

No reason why not, you would essentially have to change the PP though

 

[DaveNewbie]

Cheers guys, that explains it all a bit more thanks...
Plus I guess the council will be happier with multiple council tax rather than one!
(Do I need to 'close' this thread?)

 

[Doggit]

Very likely, one plot would only achieve £100K, whereas splitting it into two sections can achieve a higher figure. How the owner sells his property has nothing to do with the local council, and the planning department, being separate from the rates department, wouldn't grant planning permission just for the sake of increasing the councils revenue's.

It's just sensible business practice, more than likely pushed by an estate agent who'll get double the commission, than from selling a single plot.

 

[GeoffJ]

Could they be trying to attract a buyer from the self-build market?

 

[rules&rulers]

Get discount if buying more than 1 plot.

 

[angelboy]

I agree with what Doggit says as probably the prime motivator for these types of plots but in addition to that, it also depends on the size of the plot.

In some instances, the LA might not grant planning on a large plot for a single property if it goes against their local development framework. I was dealing with a guy who had a 1 acre plot whereby he wanted to build a large single dwelling but the council deemed the land should have four smaller dwellings on the site. To get round this he obtained planning for four properties, built one and never completed the rest.

It's also known that 'ahem, self-builders' buy both plots, develop the first, live in it, then sell it and develop the second all with zero capital gains tax.