Buying land at auction: an auctioneer’s guide
By Edward Swindells, Auctioneer, Palace Auctions London · Updated 13 October 2026
Buying land at auction is the quickest and most certain way to own a piece of England, but it rewards the buyer who does the homework before the hammer falls. When it falls, you have exchanged contracts. There is no survey period and no going back.
Our sale at Claridge’s on Wednesday 28 October 2026 at 1.00 pm has more than fifty land lots, from a £450 electricity substation in Suffolk to 2.3 acres in south London. This guide sets out what I tell every land buyer who rings me: what kind of land you are looking at, what planning really means for the price, the checks to make, and exactly what it costs on the day.
The first piece of land I ever sold at auction was a great one: the site where the Morrisons supermarket in Peterborough now stands. The buyers, a firm of developers, were so determined to buy it and exchange that same day that they sent their solicitor to bid for them – proof, even then, of the power and certainty of a live auction.
Why land sells well at auction. A private land sale can drag on for months while a buyer waits for surveys, finance and planning advice. At auction the price is set in the room, both sides are committed at the fall of the hammer, and completion usually follows within 28 days. Sellers get certainty. Buyers get a fair, open contest – everyone sees the bids.
Know which kind of land you are buying
“Land” covers very different things, and each is priced differently. Decide which kind you want before you look at guide prices.
| Kind of land | What you are really buying | Examples on 28 October |
|---|---|---|
| Land with planning permission | A building plot with consent already granted – the most valuable kind, and the one to check most carefully | Lot 37, Ingleton: full planning for a three-bedroom house |
| Larger sites with long-term potential | Acreage in or near towns, bought to hold, promote through the local plan, or use as it is | Lot 59, Streatham Vale (about 2.3 acres); Lot 62, Tamworth (about 1.99 acres, not Green Belt); Lot 19, Middleton |
| Infill and garden plots | Small parcels between or behind houses, often with no planning and tricky access | Lot 11, Liverpool; Lots 3, 97 and 98, Chelmsford; Lot 26, Rowley Regis |
| Former utility sites | Old pumping stations, substations and similar – small, often walled, sometimes with rights for the utility company | Lots 42, 43 and 46; Lots 70 and 71, Rendlesham substations (£450 each) |
| Garages | Rows of garages that can be let, or a site with longer-term potential | Lot 45, Telford |
| Amenity, woodland and grazing land | Countryside land, usually Green Belt, bought to enjoy, keep animals or hold for the very long term | Lots 72–77 and 87–88 (Warlingham and Coulsdon); Lots 82, 86 and 89 |
The full list of every lot is on our auction page, with guide prices and bidding links.
Planning: the question that sets the price
Most land lots at auction have no planning permission, and the guide price reflects that. Buy on what the land is today, not on what it might become.
No planning permission. You are buying the land for its current use – a field, a garden, a paddock, a piece of woodland. Anything more needs consent from the council, and there is no promise it will be granted.
Hope value. Land near houses or a town edge can sell for more than its farming value because buyers hope it will one day get permission. That hope is real money at auction, but it is a judgement, not a fact. Pay for it only if you can afford to wait, and to be wrong.
Green Belt. Much of the land around London and the big cities is Green Belt, where new building is strictly controlled. The “grey belt” changes to national planning policy have opened a door for some poorer-quality Green Belt sites, but each case still needs a planning application and a council that agrees. Check the council’s policies map for every lot.
Planning permission granted. Read the decision notice and every condition. Permissions expire if work has not started in time – usually three years – so check the date. Check too whether conditions must be discharged before you can start.
Overage. Some sellers keep a share of any future uplift if planning is granted. It will be in the Special Conditions or the title. It is not a reason to walk away, but it must be in your sums.
The best hope-value buy I have seen was made from my own family. Around 2000 we needed money for a house-building project and sold 100 acres known as Spanby Farm, near Sleaford in Lincolnshire. It was poor cropping land, with more rabbits and deer than crops, and we sold it for about £240,000. Today that land is the Highfields holiday retreat. An opportunity missed by necessity for us – and a brilliant buy by the buyer.
Ten checks before you bid on land
Do these before auction day, in this order. Most cost nothing but time.
- Read the Special Conditions and the addendum. They are specific to the lot and override everything else, including what the website says.
- Read the title and the title plan. Make sure the land on the plan is the land you walked, and note any rights, covenants or restrictions.
- Check access. Can you get onto the land from a public road, on foot and by vehicle? A narrow strip owned by someone else can block a site completely.
- Walk the boundaries. Visit in daylight, use the what3words or map on the lot page, and look for fences, ditches, trees and anyone else’s use of the land.
- Look up the planning history. Search the council’s planning portal for past applications on and around the site, and the reasons for any refusals.
- Check designations. Green Belt, conservation area, National Landscape (AONB), tree preservation orders, and any Article 4 direction that removes rights such as putting up fences.
- Check flood risk. Use the government’s long-term flood risk service for the postcode. Low-lying and riverside land often sits in a flood zone.
- Ask about services. Water, power and drainage may be nowhere near a small plot, and connecting can cost more than the land.
- Check VAT. On 32 lots in this sale VAT is added to the hammer price. The lot page and the catalogue say which.
- Fix your top price – and stick to it. Include the fees below, Stamp Duty Land Tax and your solicitor’s costs.
Take advice from a solicitor before you bid. If anything on a lot page differs from the legal pack, the legal pack wins – and please tell us.
Small plotted land: an honest word
Some of the countryside land you will see at auction – in Surrey especially – is a field that was divided into small numbered plots years ago and sold off one by one. Our sale has several, at Warlingham, Coulsdon, Ockley, Ockham and Ashtead.
They can be a pleasure to own and they are often modestly priced. But be clear about what you are buying:
- Almost all have no planning permission and sit in the Green Belt. Do not buy one expecting to build.
- Fencing, sheds and caravans may need consent, and some areas have an Article 4 direction that removes the usual rights.
- Fees matter on small lots. On a plot guided at a few thousand pounds, the buyer’s premium and documents charge can come close to the price itself. Add them up first.
- Be wary of anyone promising development value on a plot like this – including on websites and in brochures. Check the council’s view for yourself.
Bought for the right reasons, at the right price, a small plot is a piece of England to enjoy. Bought on a promise, it can be a long wait.
The lesson is simple. If you get the chance to buy land, you can afford it, and it would make you happy – always buy it.
What it costs on the day
At the fall of the hammer you pay the deposit and the fees there and then. Here is what that looks like on two land lots, using our standard terms for this sale.
| A £10,000 plot | A £250,000 site | |
|---|---|---|
| Deposit (10%, subject to any minimum in the Special Conditions) | £1,000 | £25,000 |
| Buyer’s premium (2%, minimum £2,000 + VAT) | £2,400 | £6,000 |
| Contract documents charge (£850 + VAT) | £1,020 | £1,020 |
| Paid on auction day | £4,420 | £32,020 |
| Balance of the price at completion (usually 28 days) | £9,000 | £225,000 |
On top of these, budget for your solicitor, Stamp Duty Land Tax and, on the lots marked for VAT, 20% VAT on the price. A different premium may apply to some lots – the lot page and Special Conditions will say.
Funding. Few lenders will lend on bare land within 28 days, so most land buyers use cash or arrange bridging finance before the sale. Do not bid until the money is in place.
From the rostrum: Edward’s view on land
There is no such thing as bad land – they are not making any more of it. What matters is buying at the right price, for the right reasons, and knowing exactly what you are buying.
Horses for courses. A builder, a farmer, a pony owner and a long-term investor will each see a different value in the same field. Know which one you are, and bid like it.
Read the Special Conditions. It is the mistake I see most. Ten minutes with the Special Conditions tells you more about a land lot than any photograph.
Come to the room. Land often sells best with real people competing. At our August sale a parcel of land in Wigan opened against a proxy bid of £32,000 and sold under the hammer for £50,000.
Be the patient buyer. Buying land is a transfer of long-term wealth and security. The seller is in need at the time of the sale, for any one of a million reasons; the buyer can only benefit, and owning land never hurt anyone. Like the stock market, it moves wealth and security from the person in need to the patient buyer.
Frequently asked questions
Can I build on land I buy at auction? Only if planning permission is granted. Most land lots have none, and the guide price reflects that.
Can I get a mortgage to buy land at auction? It is hard within 28 days. Most buyers use cash or bridging finance arranged before the sale.
Do I need to see the land before I bid? Yes. Walk the boundaries and check access. Most land can be viewed from the road at any reasonable time – the lot page says how.
Is VAT payable on land? On some lots. VAT lots are marked on each lot page and in the catalogue.
What happens if a land lot does not sell? It stays available after the sale on the same auction terms. Call the auction team on 020 7101 3647 to make an offer.
About the author
Edward Swindells is the auctioneer at Palace Auctions London, with 30 years’ experience as a property auctioneer, including as auctioneer for London City Auctions. He also practises as a surveyor. He is a past Vice-Chairman of NAVA (the National Association of Valuers and Auctioneers) and a long-standing member of the RICS 1913 Club. Read Edward’s full profile
How this page was written: drafted with AI assistance and edited and fact-checked by Edward Swindells.
Page last updated: 13 October 2026 at 12:00