Investment Land

All land can be considered an investment, but those who are looking simply to profit from plots should consider our following guide to land investment.

We will look into the local council plan, geological surveys and any factors such as future local developments that may affect the area. The basic evaluation facility is a free service but a small payment would be required to cover any local search costs and a more detailed check.

Location
Some land agents will sell "investment land" in the countryside. What you are really looking for is existing development and amenities. Developments are usually built next to existing ones, in keeping with the local plan. It is in these areas where the housing pressure will increase - not a field in the sticks.

If planning permission has been applied for on the land before, what was it for and what was the outcome and why. Is there recent development next to the site or has new development been on the other side of town?

The Government has on numerous occasions specified various target areas for increased development. Of course areas not included will also need to grow in time as the population increases. Consider the next boom area.
Infrastructure
Is the infrastructure in place? Local councils maybe more likely to allow development in an area not requiring substantial investment to widen roads, upgrade services such as sewage control. If the timescale of the investment is important to you, place this high on your list.
Ground conditions
Local searches will reveal whether the land is on a floodplain. It is little use buying a plot of land if it’s on a floodplain if you hope to develop the land. Planning permission will therefore be hard to come by. The type of soil may also have implications on the cost to build which will effect the values of the land too.
Timescales
Land is seen as a long term investment. This means a period of 5-10 years. Of course gains can be seen before this and indeed realised through selling the land on.
Clawback
Some sites have a clawback. This usually means that if you sell the land within a certain timeframe the vendor is entitled to a percentage of the final value. Some companies may try to hide this so ensure your solicitor finds out whether one exists. This may range from 1% or 2% to 60% so it is well worth finding out.