Land Costs in the UK: Exploring Hectares and Pricing
The cost of acquiring a hectare of land in the UK varies widely based on the location, intended use, and availabilty of planning permissions. This article will explore the differing costs of empty land in various regions of the UK, along with an understanding of the impact of location and potential use on pricing.
General Land Cost Overview
The price of a hectare of empty land in the UK can range significantly depending on multiple factors. In most rural areas outside of major towns and cities, where building permissions have been granted, a hectare can cost around ￡1,000,000. However, if the land is greenbelt agricultural land, the cost drops to approximately ￡15,000 per hectare. Towns and cities typically do not have land the size of a hectare available for building.
Location is a crucial factor in determining the price per hectare. Land in Kensington, for example, might cost tens or hundreds of millions of pounds, even if a brownfield site is available, whereas land on Teesside could cost thousands. The allocation and intended use of the land, such as for farming, forestry, or housing, also greatly influence the price.
Specific Location Costs
Land in Scotland offers a slightly different perspective on pricing. According to Agriland in 2021, the average value of grade three livestock land in Scotland rose by 46.2% to ￡4,466 per acre. This translates to ￡11,036 per hectare. Notably, Scottish agricultural land cannot be used for building without obtaining planning permission, which is often not granted.
For those looking for land in abated states, options include derelict industrial land, moorland, mountains, meadows, and forests. These areas might be obtainable for a lower price, but they may also have planning permission restrictions. Furthermore, if the intent is for housing, or in a remote location outside of London, expect to pay around ￡1M for a hectare. In London, these costs are significantly higher.
Key Considerations
The term 'location, location, location' has never been more apt when it comes to land prices. Other important factors include the zoning of the land, whether it already has planning permission, and the intended use. If the land is intended for a specific use, such as for agriculture, it may have regulatory restrictions that can affect its cost.
Foolish Question: Hectare Land Cost in London vs. Rural Areas
The question of whether a hectare of land in London or in a more rural area is cheaper is often answered with a resounding 'it depends.' Generally, London land is far more expensive due to the high demand, zoning regulations, and proximity to urban infrastructure. For example, a hectare of land in London might cost around ￡5M to ￡10M, while in a rural area, it might be around ￡1M, though these figures can vary dramatically.
The key takeaway is to thoroughly research the specific area you are interested in, understand the zoning and planning laws, and be prepared to pay a premium for urban or highly zoned land.
Keywords: hectare land cost, UK land prices, agricultural land value