We have heard a lot over recent months about the impact the pandemic has had on the UK’s housing market and the wider economic strain the country is forecasting. While the housing market has remained robust this year, experts have warned that we could see a decrease in house prices in the coming months as the stamp duty holiday comes to an end and the real effects of the pandemic on the labour market come into focus.
But what about strategic land? Has the market for development land held on despite the global uncertainty?
Strategic land is interesting in and of itself as it’s not typically affected by the movements within the financial markets. Being non-renewable (they’re not making any more of it!), it can retain a stability that other assets don’t often benefit from, and despite the pandemic and the effects that has had in the wider economy, development land is still very much in demand.
This can arguably be attributed to the fact that, pandemic or no, the UK is still in the midst of a housing crisis and there are simply not enough homes to go around. Until this is resolved, there will always be a demand for land suitable for residential development, as the need for new homes will still remain.
Crucially, the housing construction industry was one of the first to be able to resume working activities during the pandemic this year - a move which highlights the Government’s recognition of the housing issue facing the country at this time. As people face losing their jobs and businesses as an effect of the pandemic, there is likely to be an even bigger need for genuinely affordable homes across the UK in the near future to house those needing to downsize to save money - which will put further pressure on the construction industry to deliver and will have a direct knock-on effect on the strategic land market too. More demand for houses means more demand for land!
2021 promises to be an interesting year all round, and we will continue to keep you abreast of any news via this Insights blog.
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.
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