Buy land, they don’t make it any more

A rough guide to understanding land prices in the UK.

So why is some land worth £4,000 per acre while other land can be valued at £1 million per acre? Many factors influence the value of land.

Buildings and mains water add value to the land. Animals can be better kept on land with running water and shelter.

Grazing land is worth more than pasture land. Take into account the quality of the grass growing, fencing and the physical lay of the land.

Location is absolutely critical. Land is scarce in some areas, especially close to towns and cities. Proximity to a town will add value to a plot. Add to that the presence of planning permission and the value increases further.

If the land is close to residential areas then the value of development land can command a premium. Owners of such plots can often add an ‘overage’ clause to the land. In this case the present land owner will still profit from any development gain through future planning permission being granted on the land (even though they no longer own it!). Of course, land can be sold by the owners with no such clause, but expect to pay more for it.

Of course, the topic is more complicated but I hope this BLOG has given you an idea of how values of land are arrived at. If you are contemplating buying or selling land, Edge Goodrich would be happy to offer advice and guidance.

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