How much is my land worth?
Land is worth what a buyer can justify paying for its most realistic use. Without development prospects that's its current use value, such as farming. With prospects, buyers work out what the finished homes would sell for, deduct every cost and a profit margin, and what's left is the land value.
Updated October 2026. General information, not legal or tax advice.
What is current use value?
Current use value is what the land is worth for what it's used for now: grazing, arable farming, amenity or a business yard. It's set by sales of similar land in the area and is the floor under any offer.
What is hope value?
Hope value is the premium a buyer will pay because there's a realistic prospect of planning permission. It's usually higher the closer the land is to existing homes, the clearer its access and the more supportive the local plan. Hope value is real money, but only where the hope is realistic.
How do developers value land with potential?
Developers use the residual method. They estimate the gross development value, which is what the finished homes would sell for. Then they deduct build costs, infrastructure, planning and professional fees, finance, Section 106 and CIL costs, sales costs and a profit margin. The residual is what they can pay for the land.
This is why two sites the same size can be worth very different amounts. Cost of access, ground conditions, drainage, affordable housing and local sale prices all change the answer.
Why do offers for the same land differ?
Buyers make different assumptions about how many homes will be allowed, what they'll sell for and what they'll cost to build. They also price risk differently. An offer that looks high may depend on a planning outcome that's unlikely. Ask every buyer what their offer assumes.
How can I check an offer is fair?
Get independent advice from a RICS-registered valuer or a land agent who knows your area. Ask the buyer to explain the main figures. We set out ours in writing so your adviser can test them, and you're under no obligation to accept.
This guide is general information for landowners in England and Wales. It isn't legal, tax or financial advice. Take advice from a solicitor, surveyor or accountant about your own situation.