Considering Buying Land? How to Do It Successfully
A 2022 guide from The Landsite sets out nine points for anyone thinking of buying land. It starts from the view that land can be a sound investment, helped by a growing UK population and the rising demand for homes and commercial space that follows. Without a long-term plan, though, land can sit idle and earn nothing, so research into planning, development and infrastructure matters.
Buyers are urged to be clear about their purpose, whether that is building a home or putting up a residential or commercial scheme that produces income. The guide then describes the main categories. Brownfield land is abandoned or under-used land with an industrial past, and its use for housing is growing, especially where towns and cities are being regenerated. Greenfield land has never been built on and includes the green belt. The guide notes that green belt is not entirely protected, and that although large housing estates there are unusual, planners do sometimes approve other forms of development. Agricultural land is a subcategory where demand is also rising, while contaminated land, a type of brownfield, may look good value but can cost a great deal to clean up before building starts.
On research, the guide advises looking at the wider market first: strong investor demand can push prices up, whereas weak demand may be when bargains appear. Beyond land agents, it suggests online listings, auctions (only if finance is ready and you can act fast) and word of mouth through local contacts. Location deserves close study, including transport links, infrastructure and any planned regeneration, and buyers should spend time in the area.
Planning is described as often the dividing line between a good and a bad deal. Many plots are sold with outline permission, which means full permission must be secured within three years. Even detailed permission does not guarantee a plot can be built on, because restrictive covenants may apply, so an experienced lawyer helps. Where there is no permission at all, buyers should ask why, for instance whether it was refused or an earlier outline consent lapsed.
A professional survey is recommended in every case, covering boundaries, rights of way and flood risk, along with a feasibility study and environmental assessment. If the survey leaves doubts, walking away may be wiser. Finally, the guide says land should be bought with a long-term view rather than a get-rich-quick mindset. It rarely produces instant income unless detailed permission is already in place, and converting outline permission into full permission takes time. Investors who are patient can buy when demand is low and sell when it recovers.
Originally published on The Landsite (17 March 2022)
