Discovered future planning application for new development at back of house we are buying

linmarie

We are buying a house and fell in love with it because of the green space beyond the garden; a field with sheep. We have since discovered that a developer has an option on the land, that they consulted the house owners and neighbours in April (around the time we offered for the property). The estate agents keep telling us that this development will not go ahead as there will be too much opposition.  However the developers say planning permission will be applied for late this summer and we know the council has a hefty target for annual house building. We are using all of our savings to buy this house but are worried that, as well as losing what makes the house desirable, we are putting ourselves at too much financial risk. Should we be unable to cope with the building work and resultant lack of Green space, we would not have enough money to move again. A reduction in price to give us enough money to move if we need to is not totally unreasonable, surely? 

Wonka_2

linmarie said:

A reduction in price to give us enough money to move if we need to is not totally unreasonable, surely? 

This is called negotiation - and ‘unreasonable’ depends on the position of the parties involved. 

If they want to move for the same reasons you’re having doubts AND they can afford to then they may offer a reduction. 

Alternatively they may have factored this into the price already

The other consideration is any other interested parties who, if you start pushing for a reduction, become their preferred buyer leaving you out of the race. 

If the house isn’t for you (and it sounds like it’s not) then pull out now before incurring additional costs 

elsien

I would not place any value on the estate agent statement that planning permission won’t be granted because they would say that, wouldn’t they? 

Even with a high level of opposition, it doesn’t necessarily follow that planning permission will be turned down. 

You can ask for a reduction. The seller can say no. How much will you be paying for the property and how much of a reduction would you ask for?

Have you had a look at the local plan, and what that says about developments? 

Emmia

Unfortunately no one has a right to a view they don't own. A field with sheep in an area with building targets would always be a risk - its probably better you know now, so you can decide to try for a price reduction or to walk away, rather than after you've purchased and moved in.

housebuyer143

I tend to assume any house with a nice green space by it will eventually be houses - you have the luck to be notified before purchasing.

Personally I wouldn't buy it even with a reduction. You could be living next to a building site for a long time and who would be wanting to buy your house from you when this is going on? Will it change the area? 
This is probably one of the reasons the sellers are moving on, especially if it's a big estate going in. 

BikingBud

Wonka_2 said:

linmarie said:

A reduction in price to give us enough money to move if we need to is not totally unreasonable, surely? 

This is called negotiation - and ‘unreasonable’ depends on the position of the parties involved. 

If they want to move for the same reasons you’re having doubts AND they can afford to then they may offer a reduction. 

Alternatively they may have factored this into the price already

The other consideration is any other interested parties who, if you start pushing for a reduction, become their preferred buyer leaving you out of the race. 

If the house isn’t for you (and it sounds like it’s not) then pull out now before incurring additional costs 

They may feel they have made some adjustment but the impact they have assessed may be quite different to your consideration.

Did you ask why they are moving?

Have they been upfront about the application or did you have to press to find out?

If you fell in love with the location based upon the green space, once that green space has gone what is left? Is it still a good house that meets most of your needs or is it quite poor in terms of facilities and layout and needs work?

Did you look at the local plan? Bear in mind that at some point most of those houses will also be built. You might find that this is still the best option.

If you want privacy what can be done, large hedges etc, to ensure that the new houses don't overlook?
 

user1977

elsien said:

I would not place any value on the estate agent statement that planning permission won’t be granted because they would say that, wouldn’t they? 

Even with a high level of opposition, it doesn’t necessarily follow that planning permission will be turned down. 

Conversely, I can think of sites with option agreements (or where the housebuilders have actually bought and leased back to farmers) and it has taken decades for anything to get permission and then be built.

But as above, if it's important then you need to buy somewhere with a more protected view rather than next to easily-developable land.

Section62

linmarie said:

We are buying a house and fell in love with it because of the green space beyond the garden; a field with sheep. We have since discovered that a developer has an option on the land, that they consulted the house owners and neighbours in April (around the time we offered for the property). The estate agents keep telling us that this development will not go ahead as there will be too much opposition.  However the developers say planning permission will be applied for late this summer and we know the council has a hefty target for annual house building....

If the developer is due to submit the application then they've likely been working on it for two to three years - so locals (and the EA) probably knew the scheme was in the pipeline long before April.  If it was identified in the local plan you'll have a rough idea when it was in the public domain.

Unfortunately the demand for housing means the EA's optimism is probably misplaced - if the land was protected or developing it meant harm to other land or buildings then there could be a chance of refusal, but mere opposition from locals is unlikely to be enough.  Apparent government policy now is to 'bulldoze' the nimbys and others who stand in the way of building new homes... so if not now, then it won't be far in the future that these fields get built on.

(Edit: finishing sentence)

housebuyer143

Section62 said:

linmarie said:

We are buying a house and fell in love with it because of the green space beyond the garden; a field with sheep. We have since discovered that a developer has an option on the land, that they consulted the house owners and neighbours in April (around the time we offered for the property). The estate agents keep telling us that this development will not go ahead as there will be too much opposition.  However the developers say planning permission will be applied for late this summer and we know the council has a hefty target for annual house building....

If the developer is due to submit the application then they've likely been working on it for two to three years - so locals (and the EA) probably knew the scheme was in the pipeline long before April.  If it was identified in the local plan

Unfortunately the demand for housing means the EA's optimism is probably misplaced - if the land was protected or developing it meant harm to other land or buildings then there could be a chance of refusal, but mere opposition from locals is unlikely to be enough.  Apparent government policy now is to 'bulldoze' the nimbys and others who stand in the way of building new homes... so if not now, then it won't be far in the future that these fields get built on.

This! Purely being in the local development plan doesn't mean much, there are plenty of sites that are always identified and nothing ever happens. But the fact that this one is having plans submitted indicates to me that eventually in one form or another there'll be houses on the site. 

Herzlos

linmarie said:

The estate agents keep telling us that this development will not go ahead as there will be too much opposition.

It'll need more than just opposition, you'd need a solid reason for planning application to be rejected. 

So you need to assume that at some point in the future that field will become houses and factor that in. 

BikingBud

Herzlos said:

linmarie said:

The estate agents keep telling us that this development will not go ahead as there will be too much opposition.

It'll need more than just opposition, you'd need a solid reason for planning application to be rejected. 

So you need to assume that at some point in the future that field will become houses and factor that in. 

Or get the vendor/EA to underwrite any risk of price reduction should the development get built. 

Reduce price now or be liable for any impact upon the price downstream?

I bet if you raise that as a contractual term you might get some teeth sucking and back pedalling and a true indication of their level of confidence!