There’s a unique situation occurring in the UK which means investing in undeveloped land can potentially be incredibly lucrative. To provide a bit of context, there will a population rise of 7 million by 2021, at the current rate of housing development, it means there will be a shortfall of 1.4 million homes. This means the UK are facing a housing crisis.
What this means is that the government are turning to various land types for development. They are even turning to the often untouchable greenbelt lands, rezoning their developmental status and building houses on them. This is where land investment firms research and strategically locate undeveloped land for potential development and thus investment.
Previously undeveloped land can rocket in value if it is developed upon, and that is why a lot of people are turning to this investment choice which has consistently performed over the last 20 years. Land values have risen by 130% over the last 20 year, and 30% in the last year alone.
How to invest in undeveloped UK land?
First of all, it is advisable to speak to land investment firms. They will be able to provide you information on any pitfalls to avoid and give you highly sort after tips and advice. Don’t go at this alone as you will need expert advice to help guide you along the way. Land investment firms will be able to offer you the best plots of land and the best UK land for sale.
This is so you know exactly what you’re talking about when speaking to investment firms. Remember your looking for a return on your investment so you want to locate undeveloped land that has the best possibility for development that will also increase its value, this could mean residential or commercial developments.
Try to find out what the land is classified as, for example, Greenfield, Brownfield or Greenbelt. Land that is to be developed upon is classified as Greenfield or Brownfield, but you may find potential for development on the ‘untouchable’ Greenbelt sites as local authorities try to manage the housing crisis. In this case Greenbelt sites are rezoned to allow for development. Rezoning is a major part of what investors are looking for because it could be incredibly profitable.
Finally have a think about whether the redevelopment is actually commercially viable. Is there a market for what is being developed? If you are convinced this land is right for investment then speak to a land investment firm who will be able to guide you through the process and hopefully provide you with a rewarding investment.