What is the value of my land?
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 Miller Rose 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!
What Will My Land Be Used For?
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.What Features Impact Land Value?
Location
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.Supply and Demand
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.Features
This constitutes the following:- Topography, meaning the level of your land. It may be difficult to start placing the foundations for properties on uneven ground or irregular terrain!
- Drainage - plots with a minimal flood risk will be easier to sell for a premium
- Natural resources, meaning that some plots may come with good access to materials and minerals that can be mined or harvested for resale