South East Investment land

Although buying land for sale in the south east portion of the UK is difficult, the returns can be huge. Now, if you want to see a large reward, just be prepared for a serious challenge. The first challenge comes in finding self-build land, which is not easy but possible. For one thing, land considered suitable for housing is expensive and scarce in the southeast, more so than any other part of the UK.

For instance, if you were to find a plot of land in places such as Hertfordshire, Kent, or Sussex, you would expect to pay around ?170,000 for .15 to .25 of an acre, which is perfect for a family size house that could have a garden and planning permission. Keep in mind that buying land in the UK is harder in the southeast. When you start your search, you will need to register with an estate agent in the area where you are looking. Other options for finding land would be to scour the local paper and use the power of the internet.

Land in the southeast could also be located by getting in touch with the Society for the Protection of Ancient Buildings, which offers details for various properties where conversion or renovation is needed. Then, land auctions are growing in popularity but you would need to learn what you should and should not look for to be successful. To locate land auctions, again check your local paper or online.

One option that takes a little time is simply driving around and looking. Now, if you happen to spot some land that you believe would accommodate both garden and home, let the owners of the property know you are interested. Because land in the southeast is so difficult to find for self-builds, you will now see a growing trend called bungalow bashing. With this, a bungalow would be purchased that is in some degree of disrepair. Then, the bungalow would be destroyed, which means you end up with the plot of land.

When looking at bungalow bashing, there are some advantages. One of the primary benefits is that you would likely get planning permission for another home taking the demolished structure's place. In most cases, you would already have a good, working drainage system, installed electricity, gas, and water, and the land would likely not be Brownfield or contaminated through industrial use. While this all sounds great, you also need to understand the downfalls.

For instance, land in the southeast associated with bungalow bashing is expensive. In other words, you would be paying for a rundown home and land just for the land. Keep in mind that some smart owners are aware that self-builders are smart so they will add a premium onto the asking price. Therefore, for you to get a great plot of land but land you can afford, you need to be prepared to negotiate.

Typically, a plot will cost you between 40% and 45% of the overall price to self-build. However, when you start to look at prices for self-build in the southeast, that price now jumps to 50% to 60%, simply because land is so scarce. In fact, if you were to find a bungalow bashing opportunity, the cost could jump all the way to 70%. However, finding land becomes the greatest challenge.

If you are interested in self-building, do not give up on finding land in the southeast. Sure, it will take you time to find the perfect plot or to find a piece of land with a bungalow for bashing but there are opportunities. Then to ensure you get planning permission, have funding in place and talk to planners about your proposal. Remember, you can always use the internet to help you locate land.

While there are many excellent opportunities, keep in mind that self-builders should be careful of a trend in the southeast in which housing land is at a premium. What happens is that some companies will purchase large areas of farmland, which would probably not get planning permission for housing since it is rural and actually Greenbelt land. However, these firms will turn around and market the land in smaller plots, which is followed by recommend buyers wait longer for planning permission. Then, buyers are told that in the end, they will make a tremendous amount of money.

With this type of situation, no guarantee comes with this land that planning permission for housing will be granted. Therefore, it is essential that you always check with local council planners prior to making such a purchase to protect yourself. The good news is that a few companies will purchase large pieces of land and sell of in smaller pots that are honest. For this, self-builders would know if planning permission is needed or obtainable.

In most cases, plots of land per square metre are generally less expensive in Kent and East Sussex. However, remember the cost will vary based on location, size, closeness to amenities, and existing or future planning permission. Although finding affordable land in the southeast is challenging, when you do find it, you reap great rewards. For instance, a property's value not just in the southeast but also throughout the UK can easily increase by 20% more than the price paid, once building commences.

Finally, buying land in the UK with outline planning consent does not mean you can start building. In most cases, plots with this type of consent are grabbed quickly. Therefore, if you are a self-builder, you need to know how to move fast so you can get the plot of land you want and at the price that you want to pay. On the flip side, you do not want to get into too much of a hurry or you could end up buying worthless land. Obviously, buying plots of land in the UK is a balancing act but with the proper approach, it is something possible.

- James M, 26/02/06

- James M

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