Building Plots for Sale
The principle behind plot sales is quite simple: a land investment company buys a large tract of land, divides the land into portions big enough to build houses and then sell these portions as 'plots' to investors.
It has never been easier to find building plots for sale in the UK and as trends continue to swing towards self-build and land investment the number of agents dealing in building plots continues to rise.
In general building plots are sold to investors without any level of planning permission, so from the outset this is a purely speculative investment. By investment standards plots are relatively cheap (especially compared to property prices) which makes them accessible to a broad range of investors. As an investment land has performed consistently well over a very long period of time and a plot of land, even without planning permission, is subject to such increases in value.
The incremental rises in land values are of course welcomed by the investor, however the ultimate goal is of course for the land to receive planning permission and it is at his point that the windfalls could be made.
We know that there is a serious housing crisis in the UK right now. We know that the government has implemented housing development programmes which effectively force local authorities to meet strict new housing targets and that they are not avers to Greenfield development. And finally we also know that in order to meet these targets, a substantial amount of Greenfield land may be used for development. What we don't know is where this will be!
The more established and experienced land investment companies only deal with land that has been deemed by specialists as having very high future development potential. Additionally the land is located in areas of high housing need and near to existing developments, amenities and transport networks. In this way, although it can never be fully guaranteed, the chances of gaining planning permission on you land are fully maximized.
