With rising property prices, lenders becoming more stringent in mortgage applications and difficulties in finding a suitable property, it is no wonder many people are turning to buying land for development.
In 2021, just 22.5% of 25 to 34-year-olds had a mortgage compared to 59% in 2001/2002.
Buying land for development can be a cheaper alternative to buying property, along with potentially bringing in a higher return on investment.
Buying such land should be done so with caution, thorough research and expert legal advice.
Do your research
As with any large purchase, make sure to do your research, and know what to look out for. Spend time looking at suitable locations, property prices, current market rates for development land and the speed at which it sells.
While researching, keep in mind:
- Your budget
- What you plan to do with the land
- The size of the land
- Future saleability & profitability
Different types of development land
There are two main types of land you can build on.
- Brownfield land is land that was once occupied by another building. There are many pros and cons to using this land which must be weighed up. For example, the infrastructure needed for a new home is already in place which should save time and costs. However, it may be more expensive to build on as a clean-up is required.
- Greenfield land is unused land such as parks and forests and is the most popular type of land to build on. There are no clean-up costs involved in using this development land and, due to being situated at the edges of towns and cities, it may be cheaper to purchase. However, it is likely that infrastructure will need to be built and natural habitats may be destroyed.
Find suitable development land
Once you have done your research and decided which type of land is best for you, your next step is finding land for development.
Register your interest with local and national estate agents, land agents and land brokers. Look in property sections in newspapers and magazines, and do daily internet checks to see what becomes available.
If you’re looking for brownfield land, take a look at the Brownfield Land Registry in your local area.
You can also use plot finder websites such as PlotFinder, PlotSearch and PlotBrowser.
Visiting auctions is another great way to find plots of land to develop on. Be careful, however, of committing before visiting as issues may arise which can put a stop to your development plans. Research is crucial before attending an auction.
Planning permission for development land
Once you have found a plot of land, contact the local planning authority to see if you are able to build on this land. If so, find out what you are able to build as there are often restrictions on certain buildings.
Develop good relationships with planning officers at your local planning authority and don’t be afraid to ask for their advice.
Get the development land surveyed
As with any plot of land, it is important to get it surveyed. This will highlight any issues with the land and whether anything will put a halt to your development plans.
A qualified land surveyor will be able to do this and can point out the key features of the development land.
Speak with an expert residential development solicitor
There are many stages to buying land for development and issues are likely to crop up along the way. Our team of residential development solicitors are experts in their field and have years’ worth of knowledge to help you find and buy a plot of land which meets your development needs.
Give us a ring on 0161 969 3131 or fill in our contact form and we will be in touch.