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Uk Land Prices Plunge 4.6% In 2005 - Rics

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Housing market

GOOOOD NEWS despite the foul Murdochite spin.....................

The Sunday Times February 12, 2006

Farmland feels the pinch

FAMILIES who bought farmland to escape the urban rat race or avoid inheritance tax (IHT) got firm evidence last week that the boom in land values is over, writes Clare Francis.

While prices for rural land soared 25% in 2004, they fell 4.6% last year, according to new figures from the Royal Institute of Chartered Surveyors (Rics).

The average cost of a hectare of farmland (about 2.5 acres) fell from £9,820 at the end of 2004 to £9,370 at the end of last year.


And even better - heard this originally from me da - a farmer - who heard it from a neighbour - it's doing the rounds!

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The average cost of a hectare of farmland (about 2.5 acres) fell from £9,820 at the end of 2004 to £9,370 at the end of last year.

So land is generally less than £10k per hectare even after decent rises, so how much would you expect to fit on that?

The amount of housing in a given area. Density is used in planning for new residential development to measure the amount of new housing to go on land. Government policy requires local planning authorities to plan for new housing to be at a density no lower than 30-50 dwellings per hectare. In London, density is measured in terms of 'habitable rooms' per hectare, and local planning authorities in London require densities that are in practice usually much higher than the minimum range. Government policy also defines density as 'net' density, which includes garden space, access roads and car parking, but not major roads or large public open spaces.

So assuming a builder was generous and came in with 30 dwellings per hectare, that equtes to £333 for entire plot of each house. (£200 per plot if pushing 50 dwellings, more with flats)

It's a classic story of turning abundance into scarcity, De Beers would be proud, not least becuase they're able to hide their diamonds away, in the case of land it's right under our noses yet we never question it's allocation or cost.

Anyway, forget all of the above and recite the following missives :- "small crowded island", "concreting over the country", "the country is full up", "not enough land", "prices can't come down, they're not making any new land are they", "there's not enough space".

People have spent years drumming the above into our heads, they can't be wrong, can they? :lol:

Edited by BuyingBear

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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