Land Investment

A recent report from the Chartered Institute of Surveyors (RICS) noted that farmland investment was 'partly viewed as an alternative investment to the stockmarket'.

Brownfield or a site suitable for residential development would probably be considered the most prime type of investment land. But unsurprisingly these tend to be the most expensive and are relatively scarce, so investors are now looking at other possibilities for land investment.

Last year a survey undertaken by the Halifax showed that the value of residential land had risen by 808% over the previous twenty years in England and Wales. This figure excluded London. Over the same period, surprisingly the average house price had risen by only 306% - making this type of land investment a better opportunity than bricks and mortar.

Nevertheless, the Halifax Survey also showed that land investment, like stocks and shares, could go up and down in value. There was a correlation between land values and house price inflation. "When these has been either positive or negative price growth in the housing market . this has typically been amplified in the value of building land' (Halifax Residential Land Prices Research, 2003).

At the less expensive and more abundant end of the scale comes agricultural land. This had been the cheapest point of entry for the potential land investor, but in November 2004 the RICS survey concluded that the land investment buying trend had moved to farmland too. It reported, " farmland is being targeted by a new bred of investors, fuelling demand and raising land prices".

Lower prices per acre used to be the norm. Not so any more, the RICs report stated " the average land price of farmland continues to edge close to the £10,000 per hectare, with the price rises rivalling those of the residential sector in the past year".

In fact now many types of land may be worth considering as potential investment land. However, like any investment, values are liable to go up and down, and taking the Halifax research into account, certain investment land may be more of a longer-term speculative opportunity.

If you wish to speak to us about potential investment land for sale, please call today on 01727 817 480 or register with us and we will provide details as they become available.

Buying Land? Please call us today on 01727 817480

Do you have land to sell? Call 01727 817476

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