What affects the value when selling your land?
Historically, land has been one of the best-performing asset classes an individual can own, with news articles frequently demonstrating strong levels of growth for land and housing alike. That being said, land isn't immune from value fluctuation for a variety of reasons.
As with any asset, the price of land will vary over time for a number of reasons. If you're thinking about selling a piece of land, it's worth noting the most common and influential factors regarding the value of land.
Whether you're thinking about selling your land or you're just curious how much land is worth, read on to learn more about whether or not land can lose value.
Planning permission
One of the most influential factors that determines the price of your land is whether or not planning permission has been obtained. If it has been acquired, it has the potential to raise the market value of your land considerably.
That being said, if you don't already have planning permission for the plot of land you wish to sell, it may still be worth selling it without planning permission. The process of obtaining planning permission is an arduous and expensive one, and there aren't any guarantees that you'll be able to get it, so if you don't know what you're doing you may find yourself significantly out of pocket.
For the best advice on how to sell land that doesn't have planning permission, it's always worth consulting a reputable land developer.
Access to infrastructure
Just like housing, the market value of your land can vary depending on its location. If your land is located in a more urban environment and is connected to a lot of surrounding infrastructure (such as roads or power lines) your land is likely to have a higher market value.
Conversely, if the land is situated in a more rural area and is connected to little/no infrastructure, then you can typically expect the value of your land to be a lot lower.
Generally speaking, the closer a plot of land is to the centre of a busy town or city, the higher its market value will be should you wish to sell your land.
Whether it's in a floodplain
Floodplains are generally low-lying, flat areas of land that lay adjacent to rivers, streams and lakes. As their name suggests, land within a floodplain is susceptible to flooding when water levels rise.
Because flooding presents a serious risk of land and property damage, acquiring planning permission to develop floodplain land can be extremely difficult. This ultimately means that land located here will have a considerably reduced market value.
Land doesn't usually lose value
Although the state of the market may have an impact on the price your land will be sold at, it's important to note that the land itself is an asset that doesn't usually lose value over time.
This is due to its usefulness, which will not change over time. Land will always have value due to its potential for development. However, there are factors that will influence the price of land as per the above.
Perhaps the most important is changing government policy, which can change at any time, for example after an election. Therefore, if planning policy is favourable to your land, you are best advised to press on as quickly as possible to try and get planning permission.
How to value land
If you're thinking about buying or selling land, it's important to understand the true value of your land before considering any transaction. Before you sell your land, always make sure to get in touch with a reputable land developer. They will be able to provide you with an unbiased opinion about how much the land is worth.
If you're looking to sell your land and think it might be suitable for development, get in touch with us today for a free, no-obligation quote.