Spotting Development Potential in Auction Property Listings

Understanding Development Opportunities in South West Auctions

When searching for property with development potential at auction, we’ve found that preparation and knowledge are your greatest allies. At Town & Country Property Auctions, we regularly see buyers transform overlooked properties into valuable assets across Cornwall and Devon. The key lies in knowing exactly what indicators to look for in auction listings that signal hidden potential.

Property auctions in the South West offer a unique avenue for securing land and buildings with development possibilities, often at prices below market value. However, identifying these opportunities requires a trained eye and understanding of both the region and planning considerations.

Key Indicators of Development Potential

Planning Permission Status

One of the first elements we advise our buyers to check in any auction listing is the current planning permission status. Properties may come with:

  • Existing planning permission
  • Lapsed permission that might be renewed
  • No permission but precedent for similar developments nearby

Properties in the South West auction listings with existing permission naturally command higher prices but offer greater certainty. However, the most significant value can often be found in properties where planning hasn’t yet been sought but has strong potential.

Location Factors

Location remains paramount when assessing development opportunities. We’ve observed that properties with the following characteristics typically offer stronger development potential:

  • Proximity to existing settlements
  • Good transport links
  • Corner plots or properties with larger than average gardens
  • Sites near recently approved developments

Cornwall and Devon feature many coastal locations where planning can be more restrictive, but these areas also command premium prices when development is possible.

Land Size and Configuration

The physical attributes of a property often determine its development potential. In our auction listings, we recommend looking for:

  • Generous plot sizes relative to the existing building
  • Wide access points suitable for creating new entrances
  • Level ground that minimises construction costs
  • Properties with outbuildings that could be converted
  • Unusual shapes that might accommodate creative designs

Building Condition

Whilst many buyers are put off by dilapidation, properties in poor condition often present the best development opportunities. We find that auction listings featuring buildings described as “in need of modernisation” or “requiring renovation” can be prime candidates for comprehensive redevelopment rather than simple refurbishment.

Research Steps Before Bidding

Local Planning Frameworks

Before bidding on any property with development potential in our South West auctions, we strongly recommend familiarising yourself with the relevant Local Plan. Different councils across Cornwall and Devon have varying attitudes toward development types, with some being more permissive than others.

The local planning framework will outline:

  • Areas designated for growth
  • Conservation areas with stricter controls
  • Local design guidelines
  • Affordable housing requirements that might affect viability

Previous Applications

A property’s planning history can provide valuable insights. We suggest checking:

  • Previous applications on the site
  • Appeals and their outcomes
  • Applications on neighbouring properties
  • The reasons for any rejections

This information is publicly available through council planning portals and can help gauge the likelihood of success for future applications.

Access and Services

Development viability often hinges on practical matters that auction listings might not fully detail. Before bidding, we advise investigating:

  • Legal rights of access for new units
  • Availability of utilities and connection costs
  • Potential ransom strips that might affect development
  • Sewerage capacity and drainage solutions

These factors can significantly impact development costs and should be factored into your bidding strategy for South West properties.

Types of Development Opportunities in South West Auctions

Conversion Projects

The South West region offers abundant conversion opportunities, with our auctions regularly featuring:

  • Former commercial buildings suitable for residential conversion
  • Agricultural buildings with Class Q potential
  • Larger properties that could be divided into flats
  • Heritage buildings where sympathetic development could enhance value

Conversions often face fewer planning hurdles than new builds, making them attractive first development projects.

Plot Splitting

One of the most straightforward development approaches involves splitting larger plots to accommodate additional dwellings. Properties with potential for this approach typically feature:

  • Wide frontages allowing separate access points
  • Gardens large enough to accommodate new dwellings while maintaining amenity space for existing properties
  • Precedent for similar developments nearby

Change of Use Opportunities

The South West’s tourism economy creates unique opportunities for change of use developments. We frequently see successful projects involving:

  • Conversion of residential properties to holiday lets
  • Commercial premises transformed into mixed-use developments
  • Agricultural buildings repurposed for tourism or leisure

Making Your Auction Bid Count

Valuation Considerations

When bidding on properties with development potential, we recommend a disciplined approach to valuation:

  1. Calculate the end value of the developed property
  2. Subtract all development costs including contingencies
  3. Subtract your required profit margin
  4. Arrive at your maximum bid figure

This method helps prevent overbidding on properties that appear attractive but lack financial viability.

Due Diligence Essentials

Our auction process is designed for transparency, but we always emphasise the importance of thorough due diligence before bidding on any development opportunity. This includes:

  • Reviewing the full legal pack
  • Commissioning preliminary surveys if time permits
  • Consulting with planning experts about likelihood of permission
  • Obtaining budget costings from builders

By taking these steps before the auction, you can bid with confidence on South West properties with genuine development potential.

The South West property market continues to offer remarkable development opportunities for those with vision and knowledge. Through our South West property auctions, we connect buyers with properties that hold genuine potential for value creation through thoughtful development.

Posted By on October 3rd, 2025 in Blog

Book a Free Valuation

Enquire with us

If you'd like to get in touch with us, then please fill in the form below.

    Or call direct on:
    0330 174 1103