Why invest in land?
Land Price Boom Per Hectare
Location |
1983 |
2004 |
| London |
£760,000 |
6.6 Million |
| East England |
£290,000 |
3.2 Million |
| South East |
£270,000 |
3.0 Million |
| South West |
£180,000 |
2.0 Million |
| West Midlands |
£160,000 |
1.7 Million |
| East Midlands |
£120,000 |
1.5 Million |
| North West |
£120,000 |
1.4 Million |
| North East |
£110,000 |
1.2 Million |
| Wales |
£80,000 |
1.2 Million |
| Yorkshire |
£100,000 |
1.0 Million |
UK Land Prices 'Rocket'
The Price Of Residential Land In The UK Has Increased A
Staggering Eight-Fold Over The Last 20 Years
A shortage of residential land combined with buoyant demand
for new properties lies behind rising prices says the Halifax
survey. Unsurprisingly, the most expensive land in the UK
is in London and the South East and the cheapest in Wales
and the North. However, of late prices have been rising
faster in lagging areas, and the gap closing. Residential
land has proved an even better investment during the last
20 years than property - with house prices rising 306% Long
term, land supply shortages are likely to continue and as
a result house prices continue to grow.
Region By Region
The price of a hectare of London land - equivalent to two
and a half acres now stands at nearly £5.5rn. In 1983,
a hectare cost just £759,000, meaning land prices
in the capital have raised by 624%. Land prices in Wales
have grown the fastest. In 1983, a hectare cost just £85,000.
By the end of 2002, this had soared to £980,000 ••
a 1,053% increase. Across the UK, land prices have risen
from £174,000 a hectare to nearly £1.6m - an
increase of 808%.
Shortages
The Halifax survey revealed that the number of sites sold
for residential development had fallen since 1997, as focus
has switched to the redevelopment of brown field inner city
sites, However, the Halifax warned that a shortage of sites
has also been "a contributing factoi to the strong
increase in house price inflation since 1999". In addition,
Martin Ellis, Halifax chief economist, cautioned over the
levels of red tape faced by developers 'Getting permission
to build new homes in the UK Is a notoriously difficult
and long winded process."
|
