The property market took a major hit during the recession
and many investors saw the value of their portfolios
drop month by month as values plummeted and banks almost
completely closed their doors to new lending. Now all
the signs are there that it’s heading for recovery.
However it wasn’t doom and gloom for all property
investors as those who invested in land saw values go
up significantly.
In the 2nd half of 2009 The Royal Institution of Chartered
Surveyors reported that land values went up as much
as 8% as supply was limited and demand was high. Unlike
two years ago, when the cost of land was pushed up by
‘City slickers’ who were keen to try farming
as a hobby or buy a second home in the country, the
current wave of demand is being driven by investors
who have moved in to buy up land as many are seeing
land as a safer investment for their money than Property,
Shares etc.
Here
at UK Land Agent we’ve seen the amount of people
looking to purchase land as an investment go up considerably
over the last 6 months and the amount of enquiries continue
to grow. We currently have over 500 plots of land available
for sale of which 180 plots are being sold as investments.
Some of these plots are being sold by farmers looking
to release capital whilst others are being sold as part
of larger investment schemes where land is purchased
with the intention of it gaining planning permission
in time and in turn this increases the value significantly.
This type of investment has been around for a long time
and is popular as generally those wishing to purchase
a plot can do so from as little at £10,000.
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