In 2018 it became more evident than ever that something needs to be done about the current housing crisis. With Brexit looming, it’s possible that we will see the housing market put under further pressure as we could see increasing fluctuations in prices, changes to interest rates for mortgages and more. In today’s article, we’re looking at three ways in which strategic land can impact on the UK’s housing crisis and what that could mean for the housing market.
Strategic land refers to undeveloped greenfield land sites that are located close to or next to an existing settlement. Due to their greenfield classification, they will have had no prior development (unlike brownfield land) and will have just been used for agricultural or leisure purposes. Their proximity to an existing settlement means they will typically have good road access as well as access to local amenities such as schools, shops and medical care. This makes them sustainable in nature which is often attractive to house builders.
So without further ado, here are three ways in which strategic land can impact the housing crisis:
- An ethical investment. We talked a lot over the last 12 months about ethical investments, and the social and environmental impacts our choices can have. Strategic land could potentially be considered an ethical investment as it could directly contribute to the construction of more much needed housing across the country. If more strategic land sites are released for residential development, it could increase the provision of suitable sites for house builders and therefore we could see an increase in the number of homes being built. In return, this could take some of the pressure off the private and social rental markets as those who have previously been unable to get a foot on the housing ladder may now be in a position to purchase a home of their own.
- Brexit. While we are unable to predict the effects that Brexit will have on the property market, strategic land prices may continue to be unaffected by the fluctuations we often see in the property and financial markets. It is worth noting however that no investment is guaranteed and your capital is at risk.
- The Affordability Issue. Identifying strategic land for residential development contributes to the release of more suitable land for housing. An increase in the provision of new homes in a locality could potentially slow the growth in average house prices as supply begins to catch up with demand – this in turn could see more individuals in a position to be able to purchase their first home and could also alleviate some of the pressures on both the private and social rental sectors.
For more information on anything mentioned in the article above, or if you’d like to learn more about Intro Crowd and what we do, please do not hesitate to contact us today on +44 (0)20 7118 4040 or via email at firstname.lastname@example.org
This article is for educational purposes only and does not constitute investment advice. This article does not amount to an invitation or inducement to buy or sell an investment nor does it solicit any such offer or invitation in any jurisdiction.
In all cases, readers should conduct their own investigation and analysis of the data in the article. Readers are strongly encouraged to seek independent legal and financial advice when considering an investment in strategic land. All statements of opinion and/or belief contained in this article and all views expressed and all projections, forecasts or statements relating to expectations regarding future events represent Intro Crowd’s own assessment and interpretation of information available as at the date of this article.
No responsibility or liability is accepted by Intro Crowd or Sapia Partners LLP for reliance on the contents of this article.