Investing In Land

Land is a key segment of the property market, which itself is the largest investment sector in the world. Housing is universally recognised as a fundamental human need—something famously described in Abraham Maslow’s Hierarchy of Needs as essential for shelter and protection, or as the saying goes, “an Englishman’s home is his castle.”

However, land availability is decreasing. As more space is built on, less remains for agriculture, even though the demand for healthy food is growing. At the same time, populations are rising, and with more people come expanded leisure activities and services—all of which require additional land.

This ongoing need for housing and infrastructure, alongside a shrinking supply of undeveloped land, makes investing in land a unique opportunity. Demand continues to increase while the resource itself is finite, positioning land investment as a potentially rewarding option in the ever-evolving property market.

Strategic Land is essential to bringing land forward for building. Average property prices are 8x average salaries!  

I have seen strategic land for sale in excess of £1m per acre, and Hundreds of thousands is not uncomon. 

The Opportunity 

Purchasing land before planning permission is secured is common worldwide, allowing gradual construction as needs grow. Many pay in cash to avoid mortgage costs, which can double the price of a home.

Investing during a period of sustained demand is often advantageous, and with government support and chronic housing shortages, the outlook remains strong. While unforeseen global events could disrupt markets, these are rare exceptions.

You can opt for immediate certainty by buying land with planning permission—though it can cost up to ten times more—or take a longer-term approach by acquiring land without permission, potentially reaping greater rewards as it gains value.

This strategy is similar to early investments in major tech stocks or cryptocurrencies, where limited supply and rising demand propelled prices upward. Given that shelter is almost as essential as food and water, the current housing shortage underpins the strong potential for land investments.

MOMENTUM  INVESTING IN STRATEGIC LAND 

Winds are blowing in our favour.

In July 2024, the same month Labour formed a new government, Angela Rayner—Deputy Prime Minister and Minister for Housing—made it clear that annual house-building targets would rise dramatically compared to the previous decade, setting a goal of 1.5 million new homes over five years. To achieve this, she announced changes in planning regulations*¹, creating a more favourable environment for our work.

When the momentum is with you, and looks set to remain so for years, investing becomes all the more compelling. This shift in policy presents a significant upside potential, making now an opportune time to capitalise on the market’s favourable conditions.

An investment made because the sector is being pushed higher and it is likely that it will be for some time because there are factors helping develop a trend causing a pressure for process to increase. 

Warning

Most investment returns shrink as the sector becomes more popular. Already, prices for farmland and pre-planning land have begun to rise. We wouldn’t be surprised to see these prices double, as the investment still makes financial sense and outperforms most, if not all, other sectors.