Frequently Asked Questions about UK Land Investment

If you cannot see the question you want answered why not email us and we will post the reply.

Q: How have land values changed in recent years?

A: The graph below shows how land values have increased in the UK.

Land values

Q: Is there a housing crisis?

A: Yes! There is real pressure on the government to increase the supply of new homes particularly for first time buyers. Other factors like the fact there are more people living longer and more who live on their own are also causing demand to spiral upward. Estimates vary but between 3 and 4 million more homes are needed by 2020. (Source - Barker review of housing supply 2004.)

Q: How much money will I need to invest?

A: Most land plots sell for between £10k and £30k depending on their location and desirability.

Q: How do I check-out the company selling me the land?

A: As with any dealings with a new company where you are thinking of handing over money to them:

check their details at Companies House to make sure they are registered
check they have a proper company address and they can be contacted on the phone
visit them at their offices and generally research their background as much as you can

Q: How long will I need to invest for?

A: Land investment is a medium term investment, typically you will see the very best returns after 3 or more years.

Q: How do I sell my land?

A: This can be done in a number of ways:

you can sell it yourself via a website or an exchange and mart style magazine
you can use a broker to sell it for you who will charge a commission
in some cases you can sell it via the company who sold it to you (who will also charge a commission) if they offer that service

Q: What type of return can I expect to make?

A: Returns can be very high when planning permission has been granted and are often greater than 500%. There is a finite supply of land in the UK, with an ever increasing demand. Basic laws of economics dictate that its value should increase over time.

Q: What are RSS and LDF plans?

A: Regional Spatial Strategy (RSS) sets out the broad development strategy for a region for a fifteen to twenty year period. The RSS identifies the broad strategic locations, the scale and distribution of new housing; priorities for the environment and other matters including transport, infrastructure, economic development, agriculture, minerals, and waste treatment and disposal (Source: 1.3, PPS11 and 37, PPS3). A Local Development Framework (LDF) is not a statutory term; however, it sets out, in the form of a portfolio, the local development documents which collectively comprise the spatial strategy for the local planning authority's area. Essentially, the local development documents apply the requirements of national planning policies and the Regional Spatial Strategy (RSS) on a local scale. The LDF include a policy which set out the strategy for the planned location of new housing and identifies specific allocations of land for particular uses and development (Source: 1.1 and 2.4, PPS12 and 38, PPS3)