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Crap luck, Andy. I'm sure you know this, but planning applications on land that a developer doesn't own often happen because land is more valuable with planning permission granted. Landowners often reach an agreement with a developer that the latter should negotiate planning permission so that they can then sell the land to them at a higher price. This is often worth a developer's while, especially if the owner would otherwise not sell at all. It may therefore be that the developer will be your neighbour's buyer if they succeed in obtaining planning consent. It might be worth getting advice as to whether the application is likely to succeed. You do quite often get absolutely nonsensical applications made speculatively or in bad faith in case they somehow slip through the net.
Anyway, all this may not apply in your case, but perhaps it does. Have you talked to your neighbour about what's going on or is there no communication?
Our house sale fell through today, essentially due to a developer putting in a planning application to demolish our next door neighbour’s house and replace it with a block of 8 flats.
He doesn’t own the house, nor does he have an accepted offer on it, but apparently anyone can put in a planning application on a property irrespective of ownership. Which just seems crazy to me.
We’re now essentially stuck until our neighbour finds a buyer. The house has been on the market for nearly 6 years.