That's only true where it's difficult to separate the value of the land from that of the house.
But you can take an existing £300k detached house, and build a 2nd house in its garden, and sell the two houses for not much less than £300k *each*. Market forces tend at the moment to demand houses more fervently than they demand land, and so the above example shows the bare land as almost worthless.
You are confusing 'bare land' with 'land with planning permission for a dwelling'. The latter is very valuable. Given planning permission for N dwellings, it is N times as valuable .. even if it isn't N times the area.
The cost of =building= a house =is= going up, but much more slowly than the cost of the finished 'house on land' .. =building= costs are going up roughly in line with earnings (plus a bit, usually, as minimum standards increase, and taxes and red tape go up too).
Not really.
Where planning permission is difficult to get, perhaps. But if it can be got, because the local council takes the view that infill development is good for the area, then PP is cheap, and obtainable by paying a tiny fee, filling in a few forms, and waiting for the next planning meeting to rubber-stamp it all. Basically, the cost difference between land with and without PP is absorbed in the general expenses of building the extra house(s).
Indeed. Hence "bare land" is essentially free.
Bitstring , from the wonderful person Ronald Raygun said
Sure you are. There are only three elements of house cost .. 'bare land'
Anywhere. A 1/20th acre building plot with planning permission for one dwelling ranges from ~£40k to £400k+, depending where in the UK you are.
My parents bungalow has been valued at ~£350k as a dwelling (it's on a
1/3rd acre corner plot) .. ~£500k+ as a building plot (for N Town houses). Guess how much that makes the existing bricks+mortar worth. And that isn't even =very close= to downtown London.BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.