Buying Land to Build a House: What You Need to Know

Nearly 100,000 people in England have registered their interest in building their own home since 2016, but councils have only approved plots for around 63,000 of them, leaving around 36,000 people still unable to see their dream home come into being.

The thing is, buying land to build a house isn’t like a regular home purchase, as there’s more than needs to be checked and organised, and more things that can go wrong. Having an expert to guide you is certainly wise.

In this article, we take a look at all the moving parts you’ll encounter when taking this route, so you’ll have a much better idea of whether it’s right for you

Is building a house cheaper than buying?

There’s a reason why some people choose to buy land to build a house, as opposed to just buying a house in the normal way - it CAN work out cheaper. However, it doesn’t always pan out that way, as the total price you’ll pay depends on things like where the land is, what utilities are in place, and more.

Planning permission is a big thing, too, so before you even think about committing to anything, you need the full picture…not just the asking price.

The cost of the land itself is important, of course, but you’ll need to account for additional legal fees, surveys, materials, and construction costs. Forget to consider everything, and you can soon find your savings eaten up.

When you get it right, there are several benefits to be had:

• You get full control over the design and layout of your new home
• There’s an opportunity to choose the exact location you want
• You get the option to use modern, energy-efficient construction
• You have the flexibility to stage building work to suit your budget
• The value of land goes up like property prices

Whether you come out ahead financially depends on what you're trying to achieve, how long you're willing to wait, and how much risk you’re happy with.

How to buy land to build your own house

• 1

  Join your local register

Get on the Right to Build register, which will legally obligate your local council to provide sufficient plots.

• 2

  Find your plot

You'll need to work out your priorities regarding location, orientation, planning pre-approval, and service infrastructure, and find a plot that works for you. Once you've had an offer accepted, you'll need to instruct your conveyancing solicitor. Get in touch for a conveyancing quote.

• 3

  Secure financing

You'll need to be fairly certain of your budget before making your offer, but once accepted, you'll need to make your formal self-build mortgage application.

• 4

  Check planning

As part of your plot-search, you need to check whether the plot has no planning permission, full approval, or outline approval. Check the Decision Notice date to see how soon the planning approval expires.

• 5

  Conduct surveys

A land survey will measure the topography, elevation, rivers and/or services on a property, and confirm its physical boundaries. Underground features could interfere with your building plans.

Beware of ransom strips, which may be revealed when the boundary is confirmed; someone else may own the strip of land between your plot and the access road. If this is the case, they may ask for unreasonably high sums to sell you the strip or grant you legal access rights to it, knowing you can't build your new home without it.

• 6

  Legal checks

Your solicitor will check the contract and title plan, checking for easements and overage agreements, as well as any more typical title issues. A roadblock that may be uncovered at this stage is any restrictive covenant that prevents building on the land, even if you've been granted planning permission.

• 7

  Verify services

Make sure the plot has water, electric, gas and sewage mains (unless you're buying an unserviced plot). You may find that your neighbour's services cross your land, with appropriate easements, and that means you can't build where you had wanted to.

• 8

  Exchange & complete

When all the details have been confirmed, you can sign the purchase contract. Exchange and completion can usually happen more closely than a house purchase, as there is no house to move in or out of. You'll still need to allow enough time for the mortgage funds to be released, and the seller may need some time to remove their belongings from the land.

What are the risks of buying land to build a house?

Buying land to build a house on can feel quite straightforward, but there are a handful of issues that catch people out. Knowing what they are can save time, money, and a fair amount of stress down the line.

You see, not every plot is ready to build on, and not every purchase goes without a hitch if the right checks haven't been done. Going in with your eyes open means you can plan around these things rather than getting blindsided by them.

Here are some of the potential obstacles you might encounter.

• The land may not have planning permission in place
• Essential utilities and services might be unavailable or costly to connect to
• Access roads could be restricted or need improvement
• Unexpected environmental or contamination issues could arise, e.g., flooding, soil contamination, etc.
• Local authority conditions could limit the type of property you’re able to build on your purchased land
• Although self-builds are usually exempt from the Community Infrastructure Levy, failure to apply correctly could mean the full levy is payable, costing you thousands.

Doing the groundwork upfront protects what you're putting in and gives you a much better chance of the whole thing going to plan.

What should I check before buying land to build a house on?

Most people buying land spend their energy on planning permission, surveys, and legal checks, and those things do matter. But there's another set of factors that don't appear on any list of ‘must-dos’ and won't delay your purchase if you ignore them. But they might come back to bite you later.

None of the things shown below is complicated, but it is a really good idea to have a discussion about them yourself or have your solicitor look at them.

Run through these alongside the standard checks, and you’ll go into everything with your eyes wide open. The people who skip this step aren't actually saving time, as they're just pushing the problems further down the road.

Get Expert Help with Buying Land to Build a House

Buying land involves enough moving parts without the legal side of the process adding to the stress. So, if you’re thinking of creating your ideal home in this way, it pays to have a good solicitor on your side. The SAM Conveyancing team can work through everything with you, so nothing gets missed.

We handle the conveyancing, talk directly to lenders, local authorities, and the Land Registry, and deal with the complications before they become your problem, making the whole thing a lot less stressful.

Want to talk things through with us? Just get in touch today, and we’ll be happy to give you the guidance you’re looking for.

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