What Is Existing Use Value?
Existing use value is the value of land based on its current lawful use. For most farmland, this means its value as agricultural land, taking account of quality, location, access, size, productivity, tenancy position and market demand.
Development value is different. It reflects the value of land for a higher-value use, such as housing, employment or mixed-use development. This value normally depends on planning permission or a realistic prospect of planning permission.
Between these two positions sits hope value. This is the additional value that may be paid where development is not guaranteed but there is a credible possibility of future planning success.
Key points for farmers and landowners include:
Existing Use Value
Current value based on farming use.
Hope Value
Additional value reflecting planning potential.
Planning Uplift
Increase in value caused by improved planning prospects.
Development Value
Value once land can be developed.
Promotion Strategy
A route to pursue planning without farmer funding all costs.
Sale Timing
When you sell can affect the price achieved.
Why the Difference Matters
A farmer selling land at existing use value may receive far less than could be achieved if the land has genuine development potential. Conversely, not every parcel will justify a planning strategy, so a realistic assessment is important.
Understanding the value gap helps farmers decide whether to sell immediately, promote land through the planning system, enter into a promotion agreement, negotiate overage, or hold the land for future opportunities.
The right planning strategy can make a major difference to the value achieved.
How Value My Land Can Help
We help farmers compare existing agricultural value against potential development value. We assess the planning position, identify whether hope value may exist, and explain practical routes for maximising the value of land before sale.
Frequently Asked Questions
Free Farm Land Review
Value My Land provides a free initial assessment for farmers who want to understand planning potential, development value and the best route to maximising land value.
Understand the True Value of Your Farm Land
Contact Value My Land today for a free, no-obligation review of your farm land, including planning potential, land promotion options and possible development value.