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Buying a Lot with Planning Permission: A Smart Investment Opportunity

Publish Date: 30 October 2024

By Jade Shrubsole

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When it comes to purchasing property, whether for personal use or as part of an investment strategy, buying a lot that already has planning permission offers several advantages. At EIG Property Auctions, we know that making an informed decision is key to maximising your investment potential, and buying land with planning permission is one of the smartest moves you can make. In this blog, we'll explore why purchasing such a lot could be the ideal next step in your property journey.

1. Time-Saving Opportunity

One of the biggest benefits of buying a lot with planning permission is the time saved in navigating the sometimes lengthy and complex planning approval process. Securing planning permission can be a slow process involving local authorities, consultations with architects, surveys, and various regulatory bodies. By purchasing a lot where these steps have already been taken care of, you can dive straight into development or resale without the usual administrative delays.

2. Reduced Risk and Uncertainty

Another significant advantage is the reduction of uncertainty. Planning permission approval isn't always guaranteed, and the process can be a financial risk if your plans are rejected. By opting for a lot where planning permission has already been granted, you're removing that element of risk. You’ll know exactly what can be built and how it fits within the local planning guidelines, giving you greater peace of mind and a stronger foundation on which to proceed with your investment.

3. Increased Property Value

Land with approved planning permission is often worth considerably more than land without. The approval itself adds immediate value to the lot, making it a potentially lucrative asset, whether you plan to develop it yourself or sell it on to a developer or investor. Many buyers are willing to pay a premium for the convenience and certainty that planning permission provides.

4. Faster Returns on Investment

If your goal is to develop the land, having planning permission in place means you can start building straight away. The quicker you begin construction, the sooner you can sell the finished property or start generating rental income. This translates to a faster return on investment compared to starting from scratch with a plot that still needs planning approval.

5. More Attractive to Lenders

For those looking to finance the development, a lot with planning permission is often more appealing to lenders. With the approval in place, lenders are more confident that the development will proceed smoothly, increasing the likelihood of securing favourable financing terms. This can be especially advantageous for first-time developers or those working with limited budgets.

6. Planning Permission Tailored to Market Demand

Many lots that come with planning permission have been designed with current market trends and local demand in mind. This means that the approved plans often reflect what buyers or renters in the area are looking for. Instead of going through the process of researching and submitting your own plans, you can benefit from a design that is already market-friendly, helping to ensure the final development will be desirable and profitable.

7. Reduced Development Costs

When you buy land with planning permission, you can often avoid additional costs associated with resubmitting applications, revisions, and changes that might be required by local planning authorities. With a clear path to development laid out, you can budget more accurately, minimising unexpected expenses.

8. Flexibility in Building

Even though you’re buying a lot with planning permission, you often still have some flexibility when it comes to the final design and layout. Many approved plans allow for modifications, provided they stay within the general framework of the permission granted. This can give you room to tailor the project to your specific needs while avoiding the headaches of starting the planning process from scratch.

Conclusion: A Winning Strategy

At EIG Property Auctions, we frequently list lots with existing planning permission, offering buyers a unique opportunity to skip the waiting game and start building their dreams or expanding their property portfolios. Whether you're a developer looking for your next project or an investor seeking a secure asset with proven potential, buying a lot with planning permission is a strategy worth considering.

Explore our current listings of land with planning permission and take your next step towards a faster, more profitable investment with EIG Property Auctions!

Interested in learning more? Visit us at www.eigpropertyauctions.co.uk to see our latest property listings or get in touch with one of our experts for personalised advice on your next purchase.