Everyone wants to own their own bit of England

Typical Cornish landscape
Typical Cornish landscape

Over the last twenty years amenity sized blocks of land have become considerably more popular and therefore valuable. Andrew Ranson, land agent with Lodge and Thomas Land Agents in Truro has a close look at the reasons for purchasing land.

Many people think that because Lodge and Thomas sell a lot of properties with land that they only act for farmers. The reality is that an increasing number of people who sell or buy land through them are non farmers.

Whilst most blocks of land in excess of 50 acres would be sold to farmers and the occasional investor, why are people purchasing smaller blocks of land?

The most regular reasons Lodge and Thomas hear from purchasers are:

For enjoyment purposes: dog walking, motorbike scrambling or just to "scratch about on"

Andrew Ranson
Andrew Ranson

For keeping of livestock, horses etc – perhaps fed up with livery

To crop – with self sufficient aims, to plant an orchard with fruit trees, for firewood supply

For conservation aims, tree planting, birds and butterflies, carbon offsetting

For Control/Privacy/Buffer to benefit adjoining property

To exploit development potential

Investment purposes, either in its own right or to add value to adjoining residential property

Tax advantages, Capital Gains, Inheritance or Income Tax

Mr Ranson points out, "In a good number of cases, purchases have no clear purpose for wanting to purchase land; they just know that they want to. Usually the catalyst in this situation might be the opportunity to purchase land very close to their home or perhaps a windfall or inheritance that suddenly enables a purchase.

When purchasing land adjoining a house, it can add between £50,000 to £100,000 to the value of the house.

Sometimes purchasing the adjoining land to one’s house, can be a very good idea to protect one’s house and its value. Mr Ranson points out that there are a number of undesirable uses of neighbouring land that don’t require planning permission; from keeping pigs and storing old farm machinery, to the obscuring of a view with tree planting, or occasional motor bike scrambling. If you own the land you control it.

"I have known people buy land, put various restrictive covenants on it to protect their adjoining property and then sell it on, regularly for a very similar figure. This is particularly helpful when the land might have some development potential."

Mr Ranson clarifies, "In terms of what one might expect to pay for a small piece of land, you can generally apply the principle that the smaller it is (and more affordable) the more demand there will be, which leads to a higher price per acre. Regularly the bench mark of £10,000 per acre is quoted. When talking about 4 acres this is regularly the case, but regularly a two paddock will also make this figure equating to £20,000! Purchasers will regularly pay a lot for the first 2 acres and then not much more for additional land." He adds, "Location will often influence the value far more than the quality of the land."

The fact that during these tough economic times, there has not been a flood of paddocks put on the market, just confirms the enjoyment people have from owning this luxury item and their reluctance to dispose of it. From the demand side, there is a definite attraction in the tangibility of owning land, rather than perhaps investing in a share in a "dot com" company.

For advice on selling, purchasing or the value of properties with land please contact Andrew Ranson at Lodge and Thomas on 01872 272722 or andrewranson@lodgeandthomas.co.uk