Residential development appraisal
Calculate your residual land value
Start with the example below and replace the assumptions with your own figures. All allowances are included, even when their section is closed.
Understanding your result
What remains for the land?
The calculator deducts construction, other development costs, developer return and purchaser costs from the expected completed value.
A positive residual needs supporting evidence
The result shows what remains under your assumptions. An offer may differ because of planning risk, market evidence, capacity, delivery costs and agreement terms. Per-acre figures describe this scheme; they do not value another site.
A negative result does not mean the land has no value
It means the assumed development cannot cover its costs and return. The land may retain existing-use or alternative-use value. Review the evidence for sale values, capacity, affordable housing, infrastructure and abnormal costs.
Which assumptions should I check?
Use a credible housing mix, local sales evidence and site-specific construction costs. Confirm affordable housing requirements, planning obligations, access, utilities and abnormal costs. Keep allowances separate to avoid counting the same work twice.
What needs a more detailed appraisal?
A detailed appraisal should account for phasing, sales timing, cash flow, inflation, tenure, grants, tax, VAT and finance terms. This tool does not assess planning permission or deduct landowner-specific legal, tax, promotion and agreement costs.
Related Landowner Guides
Understand the Evidence Behind the Numbers
Use these guides to investigate the valuation, planning and cost assumptions that sit behind an indicative residual result.
How Is Land Valued in the UK?
Read the wider guide to valuation methods, comparable evidence, hope value and residual appraisal.
Read guideExisting Use Value vs Development Value
Understand why the residual should be compared with the property’s current and alternative-use values.
Read guideLand Value With Planning Permission
Learn how a defined consent, conditions, obligations and marketability influence the value of consented land.
Read guideSection 106, CIL and Land Value
Review how affordable housing, infrastructure and financial contributions affect the land residual.
Read guideBrownfield Land Value
Understand how demolition, remediation, occupation and abnormal construction costs affect previously developed land.
Read guideIs My Land Suitable for Development?
Establish whether a realistic planning and technical route exists before relying on capacity, cost and value assumptions.
Read guidePlanning Conditions and Development Land Value
Understand how pre-commencement conditions, investigations, mitigation, timing and delivery requirements can affect costs and residual value.
Read guidePlanning Application Costs for Development Land
Review the planning, design, survey, technical and professional costs that may need to be allowed for within a development appraisal.
Read guideUtilities and Infrastructure for Development Land
Learn how network capacity, connections, diversions, reinforcement, drainage and off-site infrastructure can influence viability and land value.
Read guideQuestions Landowners Commonly Ask
Frequently Asked Questions About the Development Land Value Calculator
What is residual land value?
Residual land value is the amount left after anticipated completed-development revenue is reduced by all reasonable development costs, planning obligations, finance, sales costs, developer return and purchaser acquisition costs.
Is the calculator a formal land valuation?
No. It is an illustrative educational tool. A formal valuation requires professional judgement, market evidence, inspection, defined assumptions and an appropriate valuation basis.
Does the calculator confirm what a developer will pay?
No. A developer may use different values, costs, finance, phasing and return assumptions. An offer may also reflect planning risk, competition, strategic value, agreement terms and the purchaser’s own delivery model.
Why does affordable housing reduce the result?
Affordable housing receipts are often lower than open-market sale values. Increasing the affordable percentage or reducing the assumed receipt lowers GDV unless another value, subsidy or cost assumption changes.
How should I choose a build cost?
Use current evidence appropriate to the location, building type, specification, procurement route and site conditions. A broad national average may be materially wrong for a particular project.
What should be included in abnormal costs?
Examples include unusual access works, utility reinforcement, remediation, demolition, ground treatment, retaining structures, flood mitigation and other costs not adequately captured by the ordinary build and external-works assumptions.
Why are acquisition costs calculated from the residual?
Purchaser costs such as tax and legal expenditure can be linked to the land price. The calculator solves for a land value after allowing for the entered percentage rather than deducting a percentage from an unknown figure.
What does a negative result mean?
It means the entered development scenario does not cover the entered costs and developer return. The land may still have an existing-use value, and a different scheme or evidence base may produce a different residual.
Can I use the per-acre output to value another site?
No. The per-acre figures merely express this appraisal result against the entered site areas. Another site may have different planning capacity, sale values, obligations, infrastructure and abnormal costs.
Why is net developable area included if it does not drive the calculation?
It provides a useful output for comparing the residual against the part of the site that supports development. The calculator uses the number and size of homes—not acreage—to derive construction and revenue.
Does the calculator include tax or VAT?
No. It does not calculate VAT, capital gains tax, corporation tax, stamp taxes, promotion fees or landowner-specific legal and transaction costs. Independent tax and legal advice is required.
What information should I send for a free initial review?
A postcode, map pin or site plan, approximate area, current use, any planning history and any known access or constraint information are helpful. Detailed drawings and reports are not essential at the outset.
Turn the Calculator Assumptions Into a Site-Specific Land Review
Send us the location and approximate boundary of your land. We will review the planning position, development route and principal constraints that may influence capacity and value.
The initial review is free and no planning drawings or technical reports are required.
Request Your Free Land Assessment