Shocked at the price of land

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Fat_Pony

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An auction sign went up near me a few days back. I got all excited thinking that the land bordering mine was up for grabs - about an acre, no planning permission, but does have road access. Went on the internet to have a look and saw guide price of £5k. Couldn't believe it, thought it must be wrong! Indeed, I was wrong. The land up for action is infact a 200m wedge of land of 0.04 acres a bit further up next to a house. My garden is bigger than this "verge". I can't see a purpose to it at all. More shockingly, that puts the price per acre at £125k. This is green belt land with pretty much no hope of any planning permission (not that you could build on 0.04acres!) and obviously can't be used for farming or grazing. What could you use it for? And is it really worth 5k?
 
If I owned the house next door I would pay that to have a bigger garden. The target market for such pockets of land is usually specific and the valuers know what such people will pay
 
But it isn't big enough to build anything on. It is literally a grass verge on the side of someone's house, less than a twentieth of an acre and triangular in shape. Maybe you could build an odd shaped garage there or put a shed on it!
 
It could be because if someone needs access to that bit of land in the future for services or access to anything else then the land owner can charge a premium to allow access?
 
I would buy its pity dam quick, though a third party so they do not know your interested. Strips of land with road access are valuable and if it adjoins yours do you want the uncertainty of some else developing it in the future. It could also be a ransom strip making it possible to develop the a joining house further.
 
rounjd here with a house - they are wanting £15k an acre.... without its more like 10k......blimmin stupid!!

years ago it was around 2k an acre!
 
Land is 'Gold' at the moment and for the forseeable future! Small acreages of land i.e. anythng between a couple of acres and say 6 or 7 acres, are commanding pretty high prices as the horse community will be very interested in these small parcels of land. I've seen prices double and treble per acre as soon as the horsey brigade are interested in buying!...and especially if it's adjoining or backing onto your existing property (as obviously it will put the price of your home up considerably too if purchased outright).
 
£5,000 either way on the price of a £300,000 house isn't very much but that extra wedge of land could decide a sale.

However shocking you find the price of land now, it will seem like peanuts in the future. In case you haven't heard, they've stopped making it!

My first two bedroomed house with a large range of farm buildings, all in good repair with slate roofs, plus 8.5 acres, cost me £3,000. I sold it for £40,000 to buy my current farm of 30 acres and a small house for £25,000. Current valuation is probably £250,000+.
 
I bought a house last year where the old owners had purchased 0.25 of an acre at the bottom of the garden. It cost them £25,000!!!!! Apparently land that is attached to or next to a property is likely to be in the region of £100,000 and upwards for an acre as it is classed as enhancing the property. This is different to paddock land at about £15,000 an acre which is just for animals.

Absolutely crazy but I now have a lovely young orchard, soft fruit cage, veggie garden, field shelter and huge chicken run. Plus it's a brilliant place for the kids to let off steam without me being able to hear them.
 
The price is what value it puts on the house, if there is an adjoining house.

People like to buy next to them because then they have control of what goes on there.

Even ordinary agricultural land is fetching £10,000-£12,000 per acre, the smaller the size the higher in proportion is the the cost as there are more people around who can afford up to £100,000. Get much over that and the market shrinks, but the banks are offering unlimited amounts to borrowers who have a good record of borrowing and paying back. As the interest rates are so low many people are looking to land to invest in as a secure place for their capital (an income, no costs like insurance) and active farmers are looking to buy while the borrowing rate is low and they can spread costs over a larger acreage.
 
Where. I am you can expect to pay circa 30k an acre for parcels up to about 6 acres. Even now at the back of me there is 2 acres, no water or electric, no buildings , no planning, nothing . 63k.
 
You cannot compare small parcels of land (green belt or otherwise)adjacent to houses as 'normal' land prices. It is completely normal for farmers to charge anything upward from 50k for an acre of land adjacent to a house, that would afterall increase the property's value substantially so why shouldn't the farmer benefit. Otherwise I thought land icertainly around here is a standard circa 10k an acre for pkts of 4 acres up. You will always pay a premium for small parcels or for land with buildings like stables/ a barn on.
 
Ah, it appears that £5,000 is the guide price. With all due respects, value is the price agreed between a willing buyer and a willing seller, not the asking price! If it is next door to you, I would strongly advise putting in an offer of what you can afford, even if it is only £50! You never know.
 
Ive been thinking of selling my yard, 2.7 acres in Herts with all facilities and services and its been valued at 150K so thats about 50k per acre so makes most other quotes on here seem small fry !!!
 
If all facilities include stable yard / school etc aswell as mains electric. / water I'd say that was a conservative valuation . However I would hazard a guess that 2.7 acres is not enough for many people .
 
I'm in the process of buying 2.5 acres for £82,500. No water, electricity or buildings. It's land adjacent to my house so I have had to pay what it might have added to my house in value after a couple of surveys plus a bit more as the seller knows how much I want it. Hurts.
 
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