Selling a house in a residential expansion area: what does it mean for you as a seller?

Selling a house in a residential expansion area: what does it mean for you as a seller?

If you want to sell a house in a residential expansion area (woonuitbreidingsgebied) in Flanders, buyers will often ask questions when they see the term on the planning extract. A permitted house in a residential expansion area can be sold like any other. The zoning does, however, say something about what may happen around and on the plot in the future. In this article you will read what the term means, what you need to disclose and how to prepare the sale properly.

What is a residential expansion area?

A residential expansion area is a land-use zone on the regional zoning plan (gewestplan). In Flanders, the regional zoning plans were drawn up from the 1970s onwards and divide the territory into zones such as residential area, agricultural area, industrial area and nature area. A residential expansion area belongs to the residential zones in the broad sense, but it is intended as a reserve. Under the decree implementing the regional zoning plans, such an area is designated for group housing development, as long as the government has not taken a decision on how it will be laid out.

In practice, this means the government kept these plots in reserve to develop residential neighbourhoods later. Many residential expansion areas have since been partly or fully built up, while others are still largely open. They also contain older houses, often along an existing street, that were already there or were later permitted individually.

Good to know: a house in a residential expansion area is not the same as a house outside a residential zone (zonevreemd). Such a house is located in a zone where housing is not the designated use, such as agricultural land or woodland. For that situation, read our article on selling a house outside a residential zone.

Can you simply sell a house in a residential expansion area?

Yes. The zoning does not limit who may buy the house or at what price. You sell a house in a residential expansion area the same way as any other house: through an estate agent, by yourself or through the notary. What matters is that the house is permitted or deemed permitted, and that you disclose the planning status correctly.

Buyers' questions usually concern three things. Can I renovate or extend the house? Could a new housing development appear next to or behind me? And can the zoning still change? You have no definitive answer to the last two questions as a seller, but you can show what is known today. To do so, ask your municipality whether a spatial implementation plan (RUP) or a subdivision permit exists or is being prepared for the area.

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What do you need to disclose to buyers?

In Flanders, a duty to inform about the planning status applies when you sell. The advertisement and the sales agreement must state, among other things, the planning designation and the permit status. You find the designation in the planning extract, which you request from your municipality. You can also consult the regional zoning plan yourself on the Flemish government's Geoloket.

If the extract says "woonuitbreidingsgebied", copy that designation word for word. Do not change the term to make it sound more attractive. A buyer who later finds out that information was missing can, in certain cases, seek to have the sale annulled or claim damages.

In addition, as with any sale, you state whether a right of pre-emption applies to the plot. This can be the case in some residential expansion areas. You will find more explanation in our article on the right of pre-emption in real estate. The notary checks this before the deed, but you avoid delays if you know it in advance.

Renovating, extending and the buyer's questions

For an existing, permitted house, the buyer can in principle apply for an environmental permit to renovate. The municipality assesses each application against the rules that apply to the plot and against good spatial planning. How broad those options are differs by municipality and by area. There is no general answer.

You help the buyer by preparing three documents in advance:

• the planning extract, no more than one year old at the time of the sales agreement;
• the building permit or the most recent environmental permit for the house;
• any information from the municipality about a RUP or planned development in the area.

A buyer with plans can also request an informative meeting with the municipality's planning department. Encourage that. It removes uncertainty and prevents the buyer from pulling out after the compromis. Also read what you can do if a buyer pulls out after the compromis.

Impact on the price and the sale

For a permitted house in an already built-up residential expansion area, the impact on the price is usually limited. The location, the condition of the house, the EPC label and comparable sales in the neighbourhood carry more weight. Some buyers even see an open residential expansion area nearby as an advantage, as long as there are no building plans. Others fear exactly that: a new neighbourhood right next door.

It is different for an undeveloped plot in a residential expansion area. If you sell such land, you cannot promise the buyer that a house may be built on it. As long as the area has not been opened up for development, a permit for an individual new house is often refused. Flanders also wants to build on less open space, and municipalities can give a residential expansion area a different designation through a RUP. That puts pressure on the value of undeveloped land. In that case, be sure to have an expert valuation carried out.

A realistic asking price is the best way to avoid a long sale. A free valuation gives you a first indicative price. An estate agent who knows the municipality can then assess how buyers in your area respond to the zoning.

Frequently asked questions

Is a house in a residential expansion area located outside a residential zone?

No. A residential expansion area belongs to the residential zones on the regional zoning plan. A house outside a residential zone is located in a zone with a different designated use, such as agricultural land or woodland.

Do I have to mention the residential expansion area designation in my advertisement?

Yes. In Flanders, the planning designation and the permit status must appear in the advertisement and in the sales agreement. Use the designation exactly as it appears on the planning extract.

Can the designation of a residential expansion area change?

Yes. A municipality or the Flemish government can set a different designation through a spatial implementation plan, for example residential area or open space. You can ask your municipality whether such a plan exists or is being prepared.

Is a house in a residential expansion area worth less?

For a permitted, existing house, the difference is usually small. An undeveloped plot in a residential expansion area is generally worth less than building land in a residential area, because an individual new house is often not permitted there.

Selling well prepared

Selling a house in a residential expansion area mainly calls for good preparation. Request the planning extract in good time, look up the permits for your house and ask the municipality about any plans for the area. With those documents you can answer buyers' questions straight away and avoid delays at the notary.

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