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Pros And Cons Of Buying Land In The UK

When it comes to investing, many people’s first try comes from real estate. Buying your own home is a great way to show finances can grow passively, simply from owning an item.

But does the same hold true for buying land? Well, yes and no.

We will explain the benefits and disadvantages of buying land in the UK, to help you understand if the investment is worth it. Most people reading this will need a loan for buying land so keep the interest rates in mind as you consider your options.

The Benefits Of Buying Land

No Renovation Costs

When you buy property, you need to put aside money to handle the repairs of the building. These repairs might be needed immediately, or they could come further down the road. With land, you don’t need to worry about these additional costs.

Your land will not crumble or need to abide by living standards. This means there are no hidden costs to prepare for.

Land Is In Short Supply

Property values are always on the rise until the property is no longer considered valuable. Environmental disasters, or wear and tear can bring down your property value through no fault of your own. Even worse, new housing can bring down the value of your home without you even realizing it.

Land, however, cannot be destroyed through environmental disasters. Nor can be bested by unexpected competition appearing.

As more and more land is sold and turned into housing, your open space will become more valuable. 

Raw Land Is Cheaper Than Developed Land

If you’re planning on creating your own home from scratch, buying raw land will be cheaper than bulldozing developed land. 

Although you plan on knocking it down to the ground anyway, developed land comes with checks and expectations that you need to abide by before buying the property. By law, it needs to be checked for quality standards before you take on the purchase. This means paying for services you don’t even care about.

With raw land, you don’t need to adhere to these restrictions, which is one reason why the process is cheaper.

The Disadvantages Of Buying Land

Still Liable For Upkeep

Depending on what you’re using the land for, you will still be liable for its upkeep. For example, if you plan on renting the land out for festivals, then the ground needs to be suitable for camping. 

As a minimum that means no toxic waste or harmful materials such as needles, scrap metal, broken glass, etc.

Still Liable For Tax

Despite not living on the land through housing, raw land is still liable for taxation. Land tax is exactly that, tax on the land. This means you still need to pay a fee for owning the area.

Gaining Development Agreements

Before you buy land you plan on developing, you need to make sure you can legally work on it. Some land masses are restricted due to zoning laws, others due to the area’s need for agriculture and some due to knowledge of what’s around the area.

For example, some farmland in the UK cannot be dug or built upon because they are known as black-plague pits. This means beneath the current soil, there are heaps of bodies all of which could still be contaminated with the deadly plague. These pits are not allowed to be disturbed, out of fear of releasing the virus.

Of course, not every land will have this dramatic history. Some might be near flooding planes, others might be close to nature reserves. Before you buy land, make sure that your future plans of development are possible.

Not A Liquid Asset

Just like buying property, investing in the land will lock your money into the purchase. You cannot take your investment out of the land easily. Just like selling a house, you need to get the land valued, put it on the market and wait for a prospective buyer.

However, unlike property, not a lot of people are in the land-buying business. Your main audience will be property developers, festival organizers, farmers, and any wealthy business close to the land wanting to expand.


Investing in land is cheaper than buying property, and it has just as much potential. You can build what you envision rather than reconstruct what’s already there. And as long as you do your research beforehand, you shouldn’t come across any surprises.

However, keep in mind that you will still be liable for taxation.