Buying Land to Develop

Whether you have already purchased a piece of land or you are exploring how purchasing land for property development works, this article can help provide some useful tips, especially if you need help financing the project.

How much is the site worth now?

How much do you need to borrow against the site?

How much do you need to borrow for construction/renovation?

How much will the development be worth upon completion?

Property Development Location

If you plan on selling the units you build on the land, what are the agents saying about the appetite and sale prices for the type of property in the area? Speak to more than one agent to get a comparable view.

There are two common types of land to attempt to build on:

Greenfield Land

Greenfield is typically rural or urban area that has not been built on in the past, such as fields or parks.

Brownfield Land

This type of land on the other hand has been built on before, usually disused plots found in urban areas.

Brownfield land is usually the preferred option because planning permission is more easy to obtain and the supply of services such as gas, water and electric may already be in place or at least more accessible.

Happy person smiling to the side with a laptop in front of them

Our free deal optimiser service saves on average £10,475.

By offering a free price comparison tool we place the power back in your hands. Our deal optimiser service forces lenders to compete for your business, saving you time and money. †

Compare & Optimise

Key considerations when buying land to develop

No doubt you will already have an idea in mind what you plan to do with the land. It may already have planning permission which you plan to follow, or you may want to adapt the planning to suit your needs.

Ultimately the factors that are likely to affect your decisions are:

Budgets

Do you have enough cashflow to support your plans, and if necessary can you get the development finance to support it? This article explores finance options in more detail below, or speak to one of our property finance experts who can chat through your situation.

Experience

The grander the plan the more experienced you should be. Too often people get carried away and bite off more than they can chew relative to their development background. If you’re excited by the challenge and the potential profits of a ground up development then be sure to take time to research as much as possible so that your heart doesn’t entirely rule your head! Even the most experienced developers will have to tackle unexpected problems that they haven’t budgeted for on a big project.

Appetite

Can you find a way to fit more units on the land? If you can vary the planning permission to feasibly squeeze more property on the site what will that do to your profit margins? You don’t want to be kicking yourself for not adapting plans that could have yielded better returns. Conversely, are you prepared for the greater cost and risk that may come with the greater reward?

Timescales

Consider mapping a timeline for how long each element of your development might take, from the legal and finance purchase process; the planning permission times; each stage of the build; as well as the time to agree and complete any sale of property.

Get in touch

Not sure what the best option is for you? Speak to one of our property finance consultants who are qualified to give you impartial advice, with no obligation.

We’re passionate about property, and would be happy to help.

Construction Loan & Development Finance

In simple terms lenders will often lend against the value of the land as well as up to 100% of the construction costs. Funds for the development works are normally paid in arrears so it’s prudent to have a percentage of the build costs in hand.

As an example, a £1m building project might need 10 ‘drawdowns’ of finance from the lender, so you would need to be fronting the £100k of costs until the lender releases the next tranch to you.

If you’ve only got £200k worth of total build costs then it’s not viable for the lender to offer 10 drawdowns of £20k, so you will need more than the standard 10-15% of construction costs as cashflow.

Experience is a big factor when lenders assess a construction finance application, particularly if you’re buying land that doesn’t already have planning permission. If you have been turned down by a lender don’t be disheartened, our development finance experts have unique relationships with property development lenders and experience sourcing construction loans for first time developers. If you are a first time developer you may want to read our guide designed to provide guidance to inexperienced developers looking to embark on their first project.

Consider a contingency, a realistic one, because a lot of the time a small 2.5-5% contingency will be looked upon unfavorably by a lender. Especially at present where materials and labour have jumped in price. Ultimately, if you don’t have enough cash or materials the project would take longer which will increase your overall costs.

What people are saying

Excellent service!

May 26th, 2026

Excellent service, friendly staff, highly recommended. Extremely efficient and nothing too much trouble

Ruth

Outstanding support, and extremely professional...

May 25th, 2026

I just wanted to take the time to personally thank Abbie and Rachael for the outstanding work and support they gave throughout this process. After approaching two lenders who both stated the property needed to be habitable before funds could be released, I honestly felt ready to throw in the towel and pull out of the sale altogether. However, your attitude, persistence, and encouragement to keep going completely changed the situation. The willingness to continue exploring further recommendations and solutions when all hope seemed lost ultimately got the sale through and the house accepted for the mortgage. They truly went above and beyond, and this would never have happened without the hard work, dedication, and effort that was put in. I genuinely cannot thank them enough for everything they did. Their professionalism and determination made all the difference, and I will always be grateful for the support throughout this process.

Aaron

Amazing customer service!

May 15th, 2026

Amazing customer service and engagement throughout, while adding a friendly and solution-oriented perspective. I would definitely recommend!

Anand

I was purchasing property by first time...

May 6th, 2026

I was purchasing property by first time, yet the whole team was very supportive and professional explaining what is the next step and what I need to prepare from my side, and what can be the outcome. I was scare of the process but they were really supportive and helpful. Finally I have my home!

Beata

Fantastic Service!

May 2nd, 2026

Brad and Amy, in fact everyone I spoke to couldn’t be nicer, more efficient and helpful. Always available, helped through every step of the process, I couldn’t recommend Propp highly enough. I have bought a few houses in the last few years and they made the process very simple.

Annabelle

What a team thank you so much!

April 28th, 2026

Abi started the process did me proud the team were on the ball and helped me achieve my goal, many thanks.

Bry

Definately recommend...

April 24th, 2026

Processed a record time, yes there was a fee however you clearly get what you pay for. Jake & Erin were ultra responsive and always got in touch when they said they would. Complete pleasure to deal with, Propp should be proud of them both.

Daisy

Zahid went over and above in every way...

April 23rd, 2026

He was amazing in a situation where things weren’t easy to secure my finance. Would highly recommend recommend Zahid to anyone.

Margaret

Professional mortgage broker

April 22nd, 2026

Very professional. Prompt and a specific response to my every query. I did a few mortgages and every time we met the timeline required from the vendor or bridging lender. Highly recommended.

Artur

Great team...

April 21st, 2026

who persevered to deliver fully for us. Excellent communication throughout. Highly recommended.

Matt

Propp were very helpful from the start...

April 20th, 2026

Communication and attention to detail was great throughout the process. Would definitely recommend to others.

Stuart

Helpful, professional and well organised