Why is UK Land
a Great Opportunity?
a Great Opportunity?
Risk vs Reward
When looking at opportunities for long-term capital growth potential, UK land has returned stunning rates of growth coupled with low risk.Overall, prices of UK raw land have increased by up to 23% in the last 12 months, and 130% since the mid 1990's. Land with residential approval has averaged over 800% growth in the last 20 years.
Well chosen UK land is an attractive opportunity that should be included in every portfolio. When looking for long-term capital growth most consider mutual funds, investment trusts, stocks, equities, and hedge funds. However, the fact is that UK land has shown better average growth with less downside volatility. This makes UK land a solid prospect for the conservative risk conscious investor.


Why UK Land has Such Great Potential
When looking at opportunities for long-term capital growth potential, we need to look at the supply and demand equation. UK land has all the ingredients for demand to far exceed supply and see land prices climb in well into the future.
UK Housing Crisis
The British government has predicted that two to three million homes will need to be constructed in the UK over the next 18 years, the vast majority in the south of England. Currently there is an annual shortage of 115,000 homes. Due to the lack of available land zoned for housing, the government is forced to reconsider planning applications on Greenfield Sites. These premier sites are the rarest and most sought after in England and consequently we believe the most likely to be considered for change of use.The UK currently builds 3.1 new houses or flats for every thousand of their population while the rest of Europe builds at nearly double that rate.
Parliament with severe shortage of housing in the UK and the South of England creating an increasing demand for new homes, property prices have soared. This has prompted the Government into action.
The former British Deputy Prime Minister Mr. John Prescott is responsible for ensuring that provision is made to build sufficient new developments to fulfill the demand over the coming years. Consequently, the requirement for land on which to build is increasing accordingly.
As an asset, land has out performed residential property by a factor of over 3 times in the period from 1983-2006 and this trend shows no sign of changing.
Why UK Land?
When looking at opportunities for long-term capital growth potential, it is clear that of all the countries in the world for land opportunities, the UK is one of the most attractive for the following reasons:Rapid Population Growth: The population of the UK in 1981 was 56.2 million. In 2001, the population had increased by about 2.6 million to 58.8 million.
Immigration: In terms of immigration, there are over 170,000 people per year granted entry into the UK This constitutes over 60% of the annual population growth. Therefore at current rates of growth the UK can expect to see at least an additional 3.4 million inhabitants within the next 20 years.
Social Trends: There is also a rising divorce rate in the UK In 1980 there were approximately 148,500 divorces throughout the UK and in 2000 this figure climbed to nearly 200,000, an increase of over 30%. Furthermore, more people are staying single by choice and getting married later in life.
The British government has predicted: "In the next 18 years with the rising population and increased lack of affordable housing, the UK will need another 3 million homes with 300,000 required in and around London alone." Essentially, this means that there is a need for massive scale housing development in the UK at present and for the near future. Therefore UK land will remain one of the most attractive investments for long term capital growth.
Recent Media
'UK needs extra 1 million houses' Mirror.co.uk - Mar 10, 2010A shortage of almost one million homes has created a housing crisis, building experts warned yesterday.
‘We need more land to hit homes target’ Essex County Standard - Apr 1, 2010
MORE land needs to be made available to Colchester Council if it is to hit its target of allowing 19,000 houses to be built by 2023, according to local planners.
UK's housing crisis 'a national disgrace' 24 dash.com - Apr 8, 2010
Measures to tackle the current housing crisis need to be top of the list for all the main political parties as they spell out what they will do to get Britain back on its feet, according to the Federation of Master Builders Published by Jon Land.
