Brown ensures land development is at the top of investors' agenda

Gordon Brown's plans to build three million new homes across the UK by 2020 has made investment in land a more attractive prospect, it has been claimed.

European property fund manager Cordea Savills has recommended independent financial advisors (IFAs) turn to investment in strategic land as a way of securing healthy returns for their clients, FT Adviser reports.

This would also help builders, as the amount of land available for development would consequently increase.

There is currently a large shortage of housing and the lack of available land with planning permission is exacerbating this problem.

However, speculators can make money by purchasing strategic land and undertaking asset management initiatives - including securing development framework allocations and attaining planning permission - in order to increase its value.

"The great advantage of strategic land is that there is the potential for a very significant uplift in value from progressing the land through the planning process," Kerrie Shaw, associate director of research and strategy at Cordea Savills, told the publication.

"Furthermore, value can be enhanced by making the land more readily developable. Moreover, we should not forget that the shortage of affordable homes is now at the forefront of the political debate."


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