The residential and commercial property investment markets in the United Kingdom have experienced considerable fluctuations over the past few years. They have struggled at times to sustain capital values and investment returns. Therefore, you might think today is also the wrong moment to invest in land and purchase building plots for development. In this article, we have mentioned how to buy land for investment in the UK.
Optimizing Investment Land Values
As the market peaks, it is critical to have all consents in place and the groundwork accomplished before it reaches its maximum. Everything points towards initiating land value enhancement when the demand for investment land is at its lowest.
Land Investment Opportunities in the UK
Though fewer homes are being built right now, the future demand will be enormous, and a significant undersupply of new homes is producing problems in the housing market now. There will come a time when mortgage holders and property developers will be forced to purchase even more land that already has an allocation or planning approval. Housebuilders have typically built up a supply of building land (sometimes referred to as strategic landbanks), which helps them to avoid the long waits for building plots and development land, as well as the requisite planning permissions for new dwellings.
Making the Most of Land Value Cycles
Even though the UK investment land market is fragmented and can be challenging to understand, the most important thing to remember is that once land has been allocated for development, the owner of that land can decide the timetable for turning it into consent to optimize their position in the property valuation cycle. Considering that land allocation and planning approval require time, the ideal moment for value optimization is towards the bottom or end of the property value cycle. In other words, when the value of a real estate is modest or stable.
