How Much Does Land Cost Per Square Meter In The UK?
When it comes to land, the cost per square meter can vary drastically depending on where you are looking in the UK. Whether you’re looking to buy or rent land, the cost is an important factor to consider. In this blog post, we will explore the cost of land per square meter in the UK and what factors affect the price.
How Much Does Land Cost Per Square Meter In The UK?
How much land costs per square meter in the UK can vary across its borders. According to the Office for National Statistics, one square metre of floor space (this is roughly the size of a red phone box) is priced at about £19,439 in Kensington and Chelsea. On the other hand, the same piece of land is worth £777 per square meter in Blaenau Gwent in the South Wales valleys.
Data gathered by the ONS also suggests the following:
- Statistics from 2016 indicate that the average cost of property sold in England and Wales was £2,395 per square metre.
- If you consider the varying costs of land across the UK, you will find that 19 of the top 20 most expensive local authority areas are in London. These include Kensington and Chelsea, the City of London, Westminster and Camden at the top of the list.
- Within London, you will find that Barking and Dagenham has been the least expensive borough. Homes in the area are priced at around £3,994 per square metre.
How much land costs per square meter depends on a host of factors. These include the following:
- Availability of services
- Developmental plans
Prices vary greatly depending on where a property is located, and this can have a huge impact on the value of a property and its potential for development or construction. In more desirable areas, such as residential areas with good schools and amenities, prices tend to be higher than in areas with less sought-after characteristics.
In addition to this, the availability of services and transport links can also play a role in the price of land per square meter. This is why the cost of land in cities is higher than in rural areas.
Another point to keep in mind is that land that is intended for residential use may be priced differently than land that is intended for commercial use.
The cost of land varies depending on development and business activity. Areas that have high levels of new housing development and commercial activities tend to be more expensive. Places with more established communities, such as villages and small towns, generally have lower prices.
House prices also have a big impact on land prices. In areas where house prices are high, land prices tend to be higher too. As more people move into an area, house prices increase, pushing up the cost of land. On the other hand, if house prices drop, land prices usually drop too.
To have a precise estimate of the cost of land per square meter in England and Wales, you can refer to the data gathered by the ONS by entering the name of the location that you want to learn about.
How Is The Cost Of Land Per Square Meter Determined?
The cost of land per square meter is determined based on its key characteristics. For instance, location is a key factor in determining the cost of land per square meter in the UK. The house prices in the local area are often a key indicator of how much land per square meter will cost.
An area that has seen an increase in house prices over the past few years will likely see an increase in land prices too, whereas an area with falling house prices will see a decrease in land values.
Additionally, areas with good transport links and services, such as hospitals and schools, tend to be more desirable and thus attract higher land prices. On the other hand, rural areas or areas without these services tend to have cheaper land costs per square meter.
Finally, the type of development or construction planned for the land can affect its price. The development potential of the land may also factor into its price; if the land can be easily developed into residential units, it may fetch a higher price than land that requires extensive investment to develop.
This is why Elmbridge in Surrey is the most expensive area with the costliest land per square meter area outside London with the cost of land being £6,115 per square meter.
South Wales and Lancashire are the cheapest places to buy property. In Blaenau Gwent, Merthyr Tydfil, Neath Port Talbot, Burnley and Hyndburn, homes cost less than £1,000 per square metre.
Overall, the cost of land per square meter in the UK is heavily affected by location and its potential for development or construction. Understanding local property prices and available services and transport links can help you get an idea of how much a piece of land might cost per square meter in any given area.
How Does Location Affect The Land Cost Per Square Meter In The UK?
When it comes to the cost of land per square meter in the UK, there are stark differences between prices in major cities and those in rural areas. Generally speaking, city land is much more expensive than land in rural areas. This is due to many factors, including the increased demand for housing in city areas and the higher house prices that accompany this demand.
When looking at major cities, land costs can vary significantly from one city to another. For instance, land costs in London are some of the highest in the country, with prices sometimes reaching up to three times as much as in other cities. One square meter of land in the City of London is easily priced at £17, 371. In comparison, land prices in Manchester or Liverpool tend to be much lower than those found in London and are estimated to be around £1,941 and £1,245 per square meter respectively.
When it comes to the rest of the UK, rural areas generally tend to have far lower land costs than those found in major cities. This is largely due to the lower house prices in these areas, which make it less attractive for investors and developers to purchase land.
Overall, it is clear that land costs per square meter in the UK vary significantly depending on whether you are looking at a major city or a rural area. City prices are almost always higher than those found in rural areas, due to the high demand for housing and the accompanying rise in house prices.
The above discussion makes it quite clear that the cost of land per square meter varies across the UK. It can range from a three-digit number in rural areas to a five-digit one in top cities. If you are interested in buying land in the UK, you may need to first consider the use of the land and then consider a suitable location that meets your purpose and budget.
Land value estimates for policy appraisal 2019 – GOV.UK
House prices: how much does one square metre cost in your area? – Office for National Statistics