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How much value does an acre of land add to your house?

How much an acre of land

How much value does an acre of land add to your house?

Wondering how much value an acre of land might add to your house? Don’t worry we’ve got you!

Tom Condon
Tom Condon ★ Digital Content Writer

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If the pandemic taught us one thing, it’s that space is so important for a modern family. Home buyers want to buy property with large outdoor spaces in a bid to ensure they have ample room to grow in the future. 


Having additional land to the original property could add a massive amount of value to your home, but…

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How much value does an acre of land add to your house?

An acre of land can dramatically increase the value of your house, primarily because it offers a larger garden, which is a highly desirable feature for many potential buyers. It also presents an enticing opportunity for future developments, which is an attractive investment for potential buyers.


The significance of this value addition becomes even more apparent when the land is granted planning permission, sparing buyers the arduous and time consuming process of obtaining it themselves. 


Land with planning permission can enhance the market value of your property with a potential increase of up to 10%. In the UK, land usually represents around 67% of a property’s total value. For example, if a 1-acre plot is valued at £100,000, the acre of land alone could be valued at £67,000. 


The type of planning permission obtained for the land can also have a substantial impact on your property’s value. Securing permission for an extension can elevate your property’s worth by a substantial 15% to 30%.


Property Price Advice suggests that converting agricultural land into residential land can result in a staggering increase of up to 10,000% in its value. This transformation can significantly increase the overall value of your property, which shows the remarkable potential for substantial value addition when dealing with land assets. 

What are the alternatives to adding an acre of land to your house?

Adding an acre of land to your property can be a significant way to increase the value of your home, especially if you’re planning to sell it. Potential buyers and estate agents often view larger lot sizes favourably, seeing it an opportunity for expansion, privacy or future development.


However, the extent to which it could add value depends on various factors like location and land usability. Adding an acre of land to your house is costly, and is much akin to purchasing another piece of property. 


To maximise the value of your property, you should consider home improvement projects such as a loft conversion or extending the living space. These extensions of space can increase your available space far faster and easier, and can get you on the market sooner.


Additionally, you could focus on essential upgrades like central heating, a new kitchen or even a fresh coat lick of paint to enhance first impressions and elevate the overall value of your home.

What actually is an acre of land?

An acre is a unit of land measurement that encompasses approximately 43,560 square feet. In the terms of land in agriculture, the dimensions diverge slightly, defining an acre as roughly 660 feet in length and 66 feet in width.


To put this into perspective, a building developer will be able to efficiently fit a minimum of 18 houses within the confines of a single acre of land. To add to this, the total area of England spans approximately 37.3 million acres, which equates to an astounding potential for 671.4 million houses. 


While it’s becoming less prevalent in contemporary housing, older homes often boast more spacious gardens, sometimes featuring plots as expansive as an acre in size.

Acre of land calculation

To determine the acreage of a piece of land, you’ll require the length and width measurements in feet. Multiply these dimensions to calculate area in square feet.


Next, divide this figure by 43,560 as this represents the equivalent of one acre in square feet, yielding the acreage of the land. 


Here is an example:


Let’s consider a plot with Length = 503 feet and Width = 669 feet. 


Area of land = 503 x 669 = 336,507 square feet.


Acreage = 336,507 / 43,560 = 7.725…


Rounded to the nearest tenth, the acreage is approximately 7.7 acres.

What is an acreage house?

An acreage house is a residential property that is located on a large parcel of land, often measuring an acre or more in size. The term acreage house is commonly used in the United States of America, and are often found in rural or suburban areas rather than densely populated urban centres. 


In the UK, we tend to know acreage houses as small holdings, homesteads and countryside cottages. 


Acreage houses offer residents a more secluded and private lifestyle compared to living in cities, and offer extensive gardens, lawns or even agricultural land. The properties tend to sway more towards traditional farmhouses. 

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How much is an acre of land worth in the UK?

The value of an acre of land varies considerably across the country, with Southern regions experiencing scarcity and higher prices compared to Northern areas.


Presently, in the UK, an acre of farmland usually falls within the range of £12,000 to £15,000. However, if your intention is to acquire the land for expanding your garden or starting a housing development or commercial development, the price will surpass these figures.


For those looking to enhance their garden with an acre of land, the minimum cost can start at £25,000 per acre, reaching as high as £50,000. Additionally, you will need to navigate the process of obtaining planning permission to change the land’s use from farmland to garden space.


Furthermore, when purchasing land, you might encounter something called Overage, where the seller retains the right to claim a portion of your profits if you profitably develop the land. This could entail a pre-agreed sum to compensate the original landowner in the event of successful property development.

How much land value does planning permission add to your house?

Acquiring a plot of land with pre-approved planning permission is an exciting prospect for potential buyers, as it signifies future potential for the property. This planning permission can encompass various improvements, such as a house extension, a swimming pool, an outbuilding or even an additional property for rental purposes.


Land with planning permission already obtained carries an even higher price, potentially reaching £300,000 in Northern areas and a staggering £1 million in Southern areas.


Many homeowners who secure planning permission prior to selling their properties have managed to achieve sales prices of up to 10% higher than they otherwise would have. Coupled with the added acreage or plot of land acquired, this can significantly increase the value of your property.

Does buying land always add value to your home?

Well, the extent to which buying land increases your home’s value depends on several things:


  • Location and condition: If the land is in a prime area with attractive features or amenities, it’s likely to add more value to your property.
  • Existing land: You should consider how much land you already have, adding more land can be beneficial but the impact on value will depend on the size and usability of the additional space. 
  • Property value: The current value of your home matters, in some cases, adding land can significantly boost the overall value, especially if it complements the existing property.
  • Parking potential: If the land allows for off-road additional parking spaces or has space for a garage to be built, it can contribute to your property’s value.
  • Local land supply and competition: The local housing market and the availability of land for sale can also affect the value increase. If land is scarce and in demand, your property’s value may see a substantial boost.

How do you value a plot of land?

Asking prices for land parcels are frequently based on individual opinions, reflecting what the market is willing to pay rather than the land’s true value. While this approach is not inherently flawed, it can lead to overpayment if the associated costs are not thoroughly understood.


The market value of a plot can change massively. Prime locations with favourable attributes are in high demand, when such plots become available, buyers are more willing to pay more for the opportunity to build on them. 


To assess the potential value of a plot that can be developed or redeveloped, you can use the following formula:


End value – Development costs – Desired equity = Plot value


First, you estimate the expected worth of the completed house you intend to build. Then you identify and deduct all expenses associated with designing and building the house. THe remaining amount represents your desired development profit or equity, and it informs the maximum amount you should be willing to pay for the plot.


However, this seemingly straightforward calculation is highly sensitive which can lead to valuation complications, like anticipating the type of house that can gain approval from the local planning authority. 


The land value calculation can be complex, which is why for each plot you will need to consider:

You will need to consider what the plot can support in terms of planning approval. Avoid basing end values on designs that may overdevelop the plot, as such plans may not gain approval.

This could include all expenses associated with constructing your home, including professional fees, design services, build costs, materials, labour and route to build costs.

There will be numerous fees during the development of a plot, including planning fees surveys, Stamp Duty tax, CIL (Community Infrastructure Levy) and allowances for site insurance and warranty provision.

The cost of building the same house can vary between plots due to site-specific issues, like foundation requirements, service connections or dealing with demolition.

Accounting for unforeseen costs is essential in a plot’s valuation. Contingency allowances typically range from 10% to 15% of construction costs.

You should consider the impact of personalising your home on its value. Features that make your home unique may or may not add value, and they could influence future resale potential.

Equity reflects the profit you anticipate from your efforts in developing the plot. This aspect is subjective and varies among different buyers. Some, like builders or developers, prioritise profitability, while others, such as self-builders may be more interested in creating a unique home. The level of equity deduction, if any, depends on your goals and willingness to pay.

How to sell my house with an acre of land in the UK

If you’re looking to sell your house which has an acre or more of land, then why not use an online estate agent like us? We can help you sell your house in as little as 28 days while making sure you get full market value for your home and land. 


We can offer an esteemed customer service experience, away from the traditional estate agent process. Our process is seamless and hassle free, and we have over 50 years of combined experience in the house selling industry.


Not only will we do everything in our power to ensure you get the best price for your property and acre of land, we will also cover all your marketing and solicitor fees. This means that the house selling process is completely free for you!

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