For landowners in England
How to Value Land: Per Acre, Garden, Commercial
Sviatoslav JerdetchiiCEO & Founder of Craftex. Updated , 7 min read
The short answer
The value of land per acre depends on what it can be used for: farmland, commercial land and land with planning for homes sit in different bands. Development land is valued by working back from the finished scheme, checked against similar sites that have sold.
- Government estimates published in March 2026 put farmland at £10,000 to £37,000 per hectare across England's regions, at 1 October 2023.
- The same estimates put residential land with full planning permission at £4,730,000 per hectare in Bedford, and expect market prices to be substantially lower in many cases.
- Commercial land is valued by the residual method, the comparable method, or both; tenanted property can be valued on its rent.
- Use a RICS registered valuer when a lender, HMRC or anyone else will rely on the figure.
The value of land per acre depends on what the land can be used for. Farmland, commercial land and land with planning permission for homes are valued in very different bands. So the first question is not "what is an acre worth", but "what could legally be built here".
Get that wrong and you may sell at farm value and miss what planning could add. Or you may accept a buyer's number without ever seeing the scheme behind it.
This guide shows how each kind of land is valued in England. It quotes the government's latest published estimates, explains the residual and comparable methods, and says when you need a RICS valuer.
Landowners searching for a commercial land valuation often need two answers: what a valuer would say, and what a developer could actually pay. We are not RICS valuers. Our free land appraisal answers the second question, with build costs priced by our own construction team. Before joining Craftex, our Development Director, Rob Barton, acquired £225M+ of land.
Agricultural vs development land value per acre in 2026
The most recent official figures come from the Ministry of Housing, Communities and Local Government (MHCLG). Its "Land value estimates for policy appraisal 2023" were published on 16 March 2026. That is the latest edition. The valuation date throughout is 1 October 2023, so the figures describe land values at that date.
The estimates are given per hectare, not per acre. A hectare is 10,000 m². An acre is 4,840 square yards, roughly 0.4 of a hectare. So a hectare is just under two and a half acres. Divide a figure per hectare by 10,000 to get a figure per m².
| Region | Low grade (4 and 5) | Medium grade (3a and 3b) | High grade (1 and 2) |
|---|---|---|---|
| East Midlands | £17,000 | £22,000 | £30,000 |
| East of England | £15,000 | £23,000 | £30,000 |
| London | £17,000 | £27,000 | £37,000 |
| North East | £15,000 | £20,000 | £26,000 |
| North West | £10,000 | £25,000 | £34,000 |
| South East | £17,000 | £27,000 | £37,000 |
| South West | £17,500 | £23,500 | £28,000 |
| West Midlands | £18,000 | £25,000 | £32,000 |
| Yorkshire and Humber | £16,000 | £23,500 | £30,800 |
These are government estimates, not our rates or offers. The grades follow the official agricultural land classification. The Valuation Office Agency valued fenced pasture with water, or arable land in good heart, with no farmhouse or buildings. It excluded any extra for the pony paddock market and any hope value.
Development land sits in a different league. The same publication puts residential land with full planning permission at £4,730,000 per hectare in Bedford and £14,730,000 in Barnet. Both figures are for a medium-density site at the local median house price.
MHCLG is clear that "these land values do not represent the market value of land". It expects market prices to be substantially lower in many cases. The residential figures treat affordable homes as if they were private sales, and leave out most Section 106 and Community Infrastructure Levy costs.
A table cannot price your own field. Send us its area and location for a developer's view.
Garden land and backland: what a plot is worth per m²
No government table gives a price per m² for garden land. The MHCLG estimates model a serviced 1-hectare site, which is far larger than most gardens. So a garden plot cannot be priced from a table.
A garden or backland plot is worth what a builder could pay for it. That depends on one thing above all: can a new home be built there? That needs planning permission from the council.
The way to put a number on a plot is the same residual method developers use on large sites:
- Value of the finished home. What the new house or flats would sell for.
- Costs. Build cost, fees, planning obligations and finance.
- Profit. The return a builder needs for the risk.
- What is left. That remainder is what the plot is worth to that scheme. Divide it by the plot area for a figure per m².
In London, the London Plan treats sites of 0.25 hectares or less as small sites, and asks boroughs to support new homes on them. Our guide to backland, garden and garage sites covers the planning tests. Before you approach anyone, check what you can build on your land.
You can also run the arithmetic yourself in our land value calculator. It is based on our 2026 London rates. Change any line to match your plot.
How to value commercial land: residual and comparable methods
Commercial land is valued in two main ways. RICS guidance on development property treats them as the two usual methods, and expects one to be cross-checked against the other.
- Comparable method. The valuer compares the site with similar sites that have sold nearby, and adjusts for the differences. It can be used where there is good, reliable and recent sales evidence.
- Residual method. The valuer works out the gross development value (GDV) of the finished scheme. Every development cost, including profit and finance, is then deducted. What remains is the land value.
- Investment method. Where the property is let, the valuer can value the rent instead, using a market yield.
The residual method in plain steps: GDV, less build costs, less fees, less finance, less the developer's profit, equals the land value. MHCLG notes that any residual is sensitive to small changes in its inputs. Our guide to GDV and residual land value works through each line.
The MHCLG estimates show how wide commercial values are. Industrial land with planning permission is put at £975,000 per hectare in Bedford and £1,000,000 in Manchester. In the ten London locations sampled, it runs from £8,500,000 to £26,000,000 per hectare, the top figure at King's Cross.
Those industrial figures come from comparable sales, not from a residual. They assume a clean, serviced 1-hectare site with road frontage and no flood risk. A real site with contamination, a tenant or poor access will differ.
If a buyer has already named a price for your commercial site, ask which scheme it rests on. Our guide below lists the questions to put to them.
What planning permission adds to land value
Planning permission changes what land can be used for, and so what a buyer can pay for it. The MHCLG estimates show the scale in one place. Here are three figures for Bedford and its region, all at 1 October 2023:
| Land use | Estimate |
|---|---|
| Farmland, medium grade, East of England | £23,000 |
| Industrial land with planning permission, Bedford | £975,000 |
| Residential land with full planning permission, Bedford | £4,730,000 |
Read the last line with care. It assumes every home sells at market price and leaves out most planning obligations. MHCLG expects real market prices to be substantially lower in many cases. In some areas its model even gives a negative value, so it does not report one.
Planning also comes with costs that reduce the land value. Conditions, Section 106 and the Community Infrastructure Levy all come off what a developer can pay. Our article on land value with planning permission shows how those lines work.
The government's farmland figures exclude "any uplift for ... hope value". Hope value is the extra a buyer may pay because planning permission might come later. Where permission is still uncertain, an owner can work with a developer rather than sell at farm value. Selling before planning can hand that uplift to the buyer.
Our guide to options, promotion agreements and joint ventures compares the routes. If you would rather sell outright, read how to sell land to a developer. Not sure which pays more? Ask us.
Craftex has completed a range of both small and large-scale projects on our commercial property with exceptional precision and quality. Dmitriy consistently delivers courteous, prompt service and has shown great flexibility in accommodating last-minute changes to plans and timelines. I highly recommend Craftex for their professionalism and outstanding workmanship.
When to get a RICS Red Book valuation
A valuation is a formal opinion of value. The RICS Red Book, "RICS Valuation – Global Standards", sets out "mandatory practices for RICS members undertaking valuation services". The current edition took effect on 31 January 2025. RICS registers the members who carry out Red Book valuations.
You need a professional valuation when someone else will rely on the figure:
- Lending. RICS says valuations underpin decisions from home mortgages to corporate finance. Ask the lender which report it needs before you instruct anyone.
- Inheritance tax. GOV.UK says you need accurate valuations for form IHT400, and land can be valued by an estate agent or chartered surveyor. HMRC may ask the Valuation Office to check them.
- Capital gains tax. HMRC can check a valuation before you file, on form CG34. Apply at least 3 months before your tax return filing date.
- A dispute. Where the figure may be argued over, instruct an independent RICS registered valuer.
A sale of UK property that is not your main home also has a tax deadline. You must report and pay any Capital Gains Tax within 60 days of disposal. Ask your tax adviser early if a valuation is needed.
Our appraisal is not a valuation, and no lender or tax office can rely on it. It answers a different question: what could a developer pay, on a scheme our in-house construction team has costed? Want the developer's view before you pick a valuer or buyer? Send the site address for a free land appraisal.
Before you value your land
- Site area in hectares or acres, from the title plan
- Planning history and any allocation in the local plan
- Agricultural land grade, if the land is farmed
- Tenancies, rights of way and covenants on the title
- The reason you need a figure: a sale, a loan, tax or a dispute
