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  • Writer's pictureNFC Homes

What affects the value of land?

When you're looking to sell land to a developer, it can be difficult to know exactly how much you should expect to profit from it. The value of land can vary significantly due to a huge range of factors, and being in the know means that you can avoid being short-changed.

Read on to learn more about some factors that affect your land valuation, and find out more about just how much the value of your land can vary. Only when you're fully informed can you be in the right position to sell your land and know that you have the knowledge needed to get the money you deserve.

How much is land worth?

This is a fairly standard question for any landowner looking to sell their land to the highest bidder. However, it's never an easy question to answer, as the sum can be highly variable.

For example, land in the centre of London can sell for £93.3 million per hectare due to the highly populated nature of the region and scarcity of available land in the city. However, the value of land in more rural parts of the country with less infrastructure may sell for significantly less than this.

The only way to truly know the value of a specific patch of land is to do your research and know the factors that change the value of your property.


One of the primary determinants of how valuable a patch of land is is the amount of use that the buyer can gain from it.

A significant way of increasing the value of land is for that land to have properties built on it. Owning a plot of land that's suitable for land development means that you can sell that land to a specialist developer, who will repurpose the land accordingly.

Land is also more likely to hold a higher value if it's located either adjacent to or as part of a farm that contains soil suitable for sustaining crops. This is most commonly an option in rural areas, as farmers are often looking to expand their yield. When working at full efficiency, the only way a farmer can increase their crop yield would be by expanding onto further patches of land.

The most valuable land is that which offers a return on investment, which is commonly found in land that can be used productively.


Where the land is located can also define just how valuable it is. Urban areas mean that property is always in high demand, and if you own land in an urban area your land is likely to be far more valuable than the same amount of land in the hills and dales.

Ultimately, this is due to supply and demand.

In cities, the supply of undeveloped land is extremely low, and urbanisation means that more and more people are moving into cities, which increases the demand for residential properties in the area.

With more people moving to cities, rural areas are facing a reduction in the number of residents that are moving in, which makes property developers less likely to invest in small towns and villages.

Mitigating factors

Whilst you may have usable land in the middle of a city, the value of your land may not be as high as you'd expect. This can be because of a range of mitigating factors that reduce the utility of the land that you own.

Mitigating factors on your land can come in a wide variety of shapes and sizes. For example, a piece of land that was previously expected to be useful for farmland may have developed into peat over time, which makes it unfarmable.

If this is the case with your land, you could look to rectify these issues and increase its utility. This could involve improving the drainage in farm fields, which may make your land a more attractive prospect.

Get an expert view

If you're interested in selling your land and need to make sure you have an accurate valuation, get in touch with the NFC Homes team today. Our expert team can offer you an accurate valuation for your land and make sure that you get the best possible price.

For a free, no-obligation quote on your land, contact us today.


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