What is the value of garden land?

How much a person would pay for a plot of garden land will be based on – 

• the size of the land and its condition

• the size of the existing garden

• the value of the house

• whether the land provides parking where there may currently be none available

• the location and scarcity of land in that area 

• whether there is any competition for the land

There are then two main ways to value the garden land; the comparable approach and the 'marriage value' approach. 

The comparable approach involves looking at evidence of sales of similar plots of land and adjusting it to account for size, location, scarcity etc. 

'Marriage value' involves working out how much the land adds to the value of the house it's being merged with and then reflecting this addition in the land's value. For example, suppose the garden land adds £10,000 to the house's value. This uplift is then shared between the buyer and seller, usually 50/50. So in the example, the land would trade at £5,000. 

While the theory of how to value garden land is relatively straightforward, it can be challenging to arrive at a precise value in practice. Good quality evidence of sales can be scarce, deals are usually private, and there is rarely an agent involved. With no agent, buyers tend to pay what they can afford and not necessarily what the land is worth, meaning comparable evidence needs to be considered carefully.  

When buying or selling garden land, it pays to take the advice of a surveyor or land agent; otherwise, you could end up paying over the odds or selling too cheap.