Benchmark land value BLV
Benchmark land values (BLV) are generally set as a multiple of agricultural use values, which are typically in the region of £20,000 - £25,000 per hectare, and as a percentage uplift on non-agricultural brownfield use values. The government note that views of appropriate premia above existing use values vary: for agricultural land, a recent academic paper (Independent Review of Build Out - Final Report) suggested BLVs of three times existing use value; the Letwin Review of Build Out (fine-margins_viability-assessments-in-planning-and-plan-making.pdf (lichfields.uk)) suggested ten times existing use value; Lichfields found that local planning authorities set BLVs of between 10- and 40-times existing use value. These BLVs do not necessarily relate to Green Belt land, which is subject to severe restrictions on development. The UK Government is particularly interested in the impact of setting BLV at the lower end of this spectrum and has included this as part of a consultation on the changes to the NPPF Proposed reforms to the National Planning Policy Framework and other changes to the planning system.
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