UK land: benefits of investing
Between 1994 and 2004, the value of UK building land has risen by 370%, whereas S&P 500 has risen only by 110%, NASDAQ - by 109%, and FTSE 100 - by 51% (source: the Valuation Office Agency, Financial Times).
UK land increases in value in two ways: 1) organic growth due to its scarcity and increasing property values and 2) by land being re-zoned and gaining permission to have houses built on it. In the latter case, the value of the land may increase more than tenfold!
Between 1986 and 2006, values of residential UK land rose at almost double the rate of residential house prices: residential house prices rose by 410% whereas UK land values rose by 764% (Source: Housing Statistics Briefing, English Partnerships September 2006).
UK Land: more about benefits of investing
Strategic UK land explained
UK land which is not designated for residential development but has a potential to be re-designated for such a development in the medium to long term is called "strategic land". Usually, strategic land is located in the area of high housing need, adjacent to existing housing and close to local amenities and infrastructure (transport links, water, electricity, etc).
Due to growing housing shortage and looming affordability crisis, authorities need to designate more and more land for residential development. Kate Barker, the economist commissioned by Gordon Brown to address planning delays, called for an urgent review of Green Belt boundaries. She suggested that some of it could meet housing needs (source: Timesonline.co.uk December 6, 2006: "Brown's economist calls for homes and shops to be built on the Green Belt".
In fact, under the last Government, building even on the most "untouchable" Green belt land has already increased by 60% (source: Telegraph.co.uk, 28.12.05).
UK land which is designated for residential development can be worth around 80% of land with a planning permission and 20 times more than UK strategic land. Therefore, opportunities arise to invest in strategically located UK land with a view to profit from possible re-designation/re-zoning.
UK land: more about strategic UK land
UK land for sale
Strategic UK Land Ltd offers UK land close to London for GBP 14/sq. m. Land designated for residential development in the same area is worth around GBP 197/sq. m.
Land for sale is located close to existing housing and infrastructure and minutes away from local services and amenities, schools, shops, etc. Due to strategic location, this land has a potential to be re-zoned for residential development in the medium to long term and thus to gain in value many times.
Each plot of land has access rights and is accessible by car either direct from a public highway, or via a legally established vehicular right of way.
Land is sold on a freehold basis meaning that a buyer and his/her heirs have an absolute right of ownership and control over the plot after purchase. The freehold title of ownership is registered at the UK's Land Registry.
Due diligence has been conducted on land for sale by an established UK law firm to make sure that the site is not contaminated, that its physical attributes are suitable for construction of housing (provided planning permission is granted), and that authorities do not have plans to use nearby area for public purposes (building of highways, public parks, etc).
Strategic UK Land Ltd also offers larger plots of UK investment land.
UK land for sale: more details
UK land: useful links
UK and London property
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