Do you have a plot of land sat around gathering dust (or rather tumbleweeds), or simply wish to know how much your land assets are worth? Well, you’re in luck, as Centrick will be guiding you through the many factors that determine what your land is worth: from prospective usage, to boosting value, here’s our breakdown of what your plot could be worth!
When determining land value, it’s important to understand what the prospective use of your plot could be. By considering what your buyer will be looking for in their next plot, you can begin to determine its relative value on the market.
The two primary uses for substantial plots of land are for the development of building structures, or for agricultural purposes. The former category is particularly lucrative, especially considering the lack of residential property currently on the market. Developers are constantly on the hunt for plots that could be transformed into residential, commercial, or mixed-use spaces that can generate them a profit. On the other hand, plots may be sold as farmland or for agricultural purposes. This could pertain to the expansion of existing farms, the utilisation of land for grazing, or the construction of structures or facilities for the keeping of animals – in short, the use of land for agriculture is just as broad and laden with complexity as the sale of land for development.
Location is vital in determining land value, with proximity to train stations, motorways, shops, schools and business hubs all increasing the value of your plot. This is particularly important if your plot is being purchased by a developer, as the construction of commercial and residential buildings often hinges directly upon the desirability of location, with the likelihood of profit for developers increasing if they are constructing properties in sought-after areas. What’s more, green belt sites may be worth a premium too, as this land is protected from being disrupted by heavy construction or alteration to its natural state – this land may be more suitable for agricultural purposes.
Is there likely to be a ready, willing and able buyer looking for a plot like yours? The chances of this are higher if there’s high demand and low supply, which is currently the case in the residential property market. This has a direct impact on the demand for plots of land, with the government’s pledge to construct 300,000 homes requiring the acquisition of viable plots upon which to build. With the population in Britain also steadily growing, the demand for development land looks set to continue outweighing available supply.
This constitutes the following:
Obtaining permission to construct on a site is expensive, time-consuming and not guaranteed. Having existing permission can provide a boost to your land value by simplifying the process for your plot’s future owner, saving them time and money. This is particularly impactful if your land is well-situated to become a development site.
The performance of similar plots to yours is a primary way in which valuers such a Centrick can appraise your land and provide you with an accurate land value. If you’re considering selling your land, it’s worth looking at comparable sites to determine what your land is worth.
For example, plots set out for multi-storey flats or large estates will be more valuable than plots designated for one large family home. This largely relies upon the scale of available, useable space that is up for sale.
If your plot is set to become agricultural land, or any form of land that will create an income for the owner, such as a hunting lease, your valuer will use the projected income to help understand the value of your land. Plots that could potentially generate more revenue will generally be deemed more valuable.
Although all of the points we’ve mentioned can help you deduce a generalised figure for what your land is worth, we still recommend consulting an expert land valuer to provide you with the best tailored advice and quotation for your plot. Our expert valuation team combine decades of knowledge with the latest market insights to accurately value your land, and help you make the best decision regarding the future use of your land. Centrick’s decades of land agency experience and abundance of connections will help you find the perfect purchaser for your plot – for more information on how Centrick can help value and transform your land, contact us using the form below!
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