land investment
Land Investment is an attractive, popular, and highly credible addition to any investment portfolio. Between 1986 and 2006 residential land values rose at almost double the rate of residential house prices – residential house prices have risen by 410% whereas land values rose by 764% (Source: Housing Statistics Briefing, English Partnerships, September 2006).
Based on figures produced by the Valuation Office in January 2006, in England and Wales (excluding London) residential land had an average value of over £1m per acre (£1,052,205). And in the South East of England, residential land values at that time averaged over £1.3m per acre.
The rising value of undeveloped land reflects a buoyant housing market, the shortage of housing and strong economic growth. Naturally these values vary depending on numerous factors, including location, existing infrastructure, and residential appeal.
Due to this continued rise in value, land investment can offer steady, medium-to-long term capital growth. Unlike many other investments, land is a tangible asset. The freehold plots we sell come with vacant possession with your name registered as the legal owner at Land Registry. You can choose to use them for any lawful purpose and decide what happens to them including when and how much you sell them for. After completion, you have control over the day to day management of your individual plot of land and we have no further involvement in any part of the management of your plot.
By investing in land without planning permission; the potential value can increase as much as ten-fold if and when planning permission for residential development is granted. This is where the greatest profits of land investment can be made (Source: The Independent, 6th December, 2005).
Local councils are sensitive about changing the status of greenbelt land. However, in order to meet government plans for new housing, and to fulfil market need due to the lack of affordable homes and general housing stock, more land will have to be identified for new development.
The value of land can fall as well as rise.
Where next?
Advantages of Investment Plots »
Land for Sale from Vantage Land »