Investing in Land
At present Land Investment has become the fastest growing alternative investment in the UK because it is considered that the residential property market is overheated and because of the government's housing proposals to "concrete over" the greenbelt.
Large bonuses have been paid in the city over the past few years and it seems that one of the assets that successful individuals always want to buy is part of the countryside. This is proved by Knight Franks farmland review for the second quarter of 2006 which shows that demand for farmland has increased by 42% over the same period last year.
According to the Royal Institute of Chartered Surveyors (RICS) the share of the land market being sold to non-farmers is 46%. Rich City investors wanting to become "lifestyle farmers" are largely driving the market..
UK Land Investments
When looking at investments for long-term capital growth prospective, investments in land have returned dramatic rates of growth coupled with low risk according to historic data and trends.
Overall prices have increased by up to 30% in the last 12 months and 130% since the early 1990s with an average 920% growth in the last 20 years.
When looking at investments for long-term capital growth most investors consider mutual funds, investment trusts, stocks, equities, and hedge funds. However, the fact is that land and particularly land investment in UK has shown better average growth with less downside volatility. This makes land a solid investment for the conservative risk conscious investor.
Land Gets the Smart Investor's Vote
The message couldn't be clearer. Land, particularly greenfield sites in close proximity to expanding urban and suburban centres, is strongly tipped to be the top investment performer for the foreseeable future. Investors, from major property portfolio managers to individual first-time buyers, are increasingly being drawn to the exciting opportunities of buying land. Historical trends in UK land sale prices are impressive enough, and what is not widely known is that land prices have significantly outperformed even the astonishing rise in house prices. A recent analysis by Savills clearly illustrates the point. A chart of the gain in UK land prices measured against the growth in house prices is instructive.
Lloyds & Co Land Investments (“Lloyds & Co Land Investments Ltd”) is not authorised or regulated by the Financial Services Authority or any other regulatory body. Lloyds & Co does not give investment advice or offer regulated investment products to the public. Lloyds & Co offers parcels of land for sale. Having sold the land, Lloyds & Co do not pursue re-zoning or planning permission and as such does not carry on any regulated activities under the Financial Services and Markets Act 2000. Neither Lloyds & Co nor any person connected with it will have any role in pursuing re-zoning or planning permission, either in respect of individual parcels of land or a site as a whole, as a way of increasing the value of the land. Lloyds & Co gives no guarantees that land will in the future be re-zoned for development purposes or that planning permission will be granted. The value of land and any income from it may go down as well as up and you may not get back the original amount invested. Past performance is not a guide to the future.