Most of us are familiar with the process of buying a house, whether it’s something you’ve done or something you wish to do in the future. But when it comes to buying land, that’s where the confusion starts to set in.
‘What is an acre of land? How much is an acre of land worth? Will buying an acre add value to my property?’ are no doubt questions that come to mind.
We’re going to answer these questions for you, as well as factors that may affect the value of an acre and also what you can expect the average price of land to be in the UK.
Use the menu below to help guide you around:
- How much area is an acre?
- How much is an acre of land worth?
- Will an acre of land add value to your house?
- Factors that affect the value of an acre of land
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How much area is an acre?
An acre is used to describe an area of land that is the equivalent of about 43,560 square feet of land. In farming, however, the measurements are slightly different, with an acre being considered around 660 feet long and 66 feet wide.
A building developer can comfortably fit at least 18 houses into an acre of land, helping you to understand the sheer size of an acre.
It’s less common in modern houses to have land the size of an acre but in older homes, you may enjoy larger gardens, with acre-sized plots.
How do you calculate acres of land?
In order to calculate the acreage of an area of land, you will need to know the length and width of the land in feet. You then need to multiply the length by the width to get the area of land in square feet.
This number should then be divided by 43560 (as this is the equivalent of an acre in square feet) to show the acreage of the land.
To help you visualise, here’s an example:
Length = 425 feet, Width = 592 feet
Area of land = 425 x 592
=251,600 square feet
Acreage = 251600/43560
If maths isn’t your strong suit, there’s always the option of using an online calculator to do the work for you!
How much is an acre of land worth?
The answer to ‘how much is an acre of land worth’ changes across the country, with land down south being less common and harder to find compared to land up north.
In today’s day and age, an acre of UK farmland is valued to be somewhere between £12,000 and £15,000. However, if you’re wanting to buy the land to be part of your garden or to turn it into a housing development, the cost is going to be much more than this.
If you’re wanting to buy an acre of land to add to your garden, you can expect to pay a minimum of £25,000 per acre, with prices reaching up to £50,000. You will also need to apply for planning permission for a change of use to change the land from farmland.
The farmer who sells you the land may also want an overage on the land, which means the right to gain more money if you go on to profit from the land.
For example, you may have a pre-agreed sum with the farmer as to how much you will pay them should you go on to develop the land with properties and you, therefore, make a profit from purchasing the land.
Land with planning permission already granted will be a lot more costly, with it potentially costing you up to £300,000 in the north and £1million in the south.
What is the average price of land in UK?
The average value of farmland in the UK rose to £9,700 per acre in 2021, with most sales agreed seeing the land average between £8,000 to £10,000 per acre.
Of course, the costs vary across the different parts of the country and so you will need to do some research into your specific area to understand what to expect.
If you have an area of land and would like to know what the value is, you could contact some local estate agents to have them come and inspect the land to give you a valuation.
You will find a lot of estate agents will be happy to do this, as they will believe them helping you now will stand them in good stead to be the estate agent you choose to sell the land with when that time comes.
Will an acre of land add value to your house?
There’s no doubt an acre of land will add value to your house, as it brings a larger garden, which is desired by many, and also future potential for development.
If the land is to have planning permission, this will add even more value to the property, as buyers don’t have to go through the stressful and time-consuming process of planning permission themselves, which many buyers will happily pay a premium for.
Also, it shows a buyer straight from the off that they will be able to develop the property and land when they choose to without any issues.
Land with planning permission can increase the market value of your property by up to 10%. With residential land in the UK, land usually equates to about 67% of the property’s total value.
So if, for example, a 1-acre plot is worth £100,000, an acre of land would be worth £67,000.
Depending on what you get planning permission for with the land may also increase your property’s value by large amounts. For example, an extension could increase the value of your property value by 15% to 30%.
According to Property Price Advice, if you turn agricultural land into residential land, you could increase its value by as much as 10,000% which will add huge amounts to the total value of your property.
Factors that affect the value of an acre of land
As we touched on earlier, there’s no set price for an acre of land with there being various different factors that will affect the answer to ‘how much is an acre of land worth’.
To give you a better idea of what could affect the value of your land, we have got a list of the variables any estate agent or potential buyer will consider:
- Intended purpose of the land – the intended use of the land will have a big impact on how much an acre of land costs. As we mentioned earlier, if you’re wanting to use the land for residential purposes, then this will come at a much higher cost than for agricultural purposes
- Environmental factors – land that is affected by natural disasters such as earthquakes, landslips or floods will naturally come at a lower cost. The same will be for land that is located near chemical or nuclear plants. However, on the flip side, land that is understood to have the potential for mining precious materials will see a boost to its cost
- Location – just like with buying a house, the location of the land will play a big role in its cost. For example, as we mentioned earlier, you won’t find an acre of land down south for short of £1million, especially if it’s near a major city. Land which is by the coast will also be more costly
- Supply and demand – just like with anything, if supply is low and demand is high, the price will be driven up. This is why the cost of land near London is so high as the amount of land available is so minimal, yet the demand to live there is so high, pushing the price up. In contrast, areas where there is a vast amount of supply which outweighs the demand will be much cheaper land to buy
- Appearance – with looks being very important to most people when buying anything, buying land is no different. If the land looks aesthetically pleasing, with great views, well-mowed lawns and level surfaces, then this will push the price up by a fair amount
- Economic impact – the economic activity of the local area will have a large impact on the answer to ‘how much is an acre of land worth’, with new businesses being established or created in an area increasing the cost of land, as these businesses bring new workers and their families, which brings more demand for housing, schools, doctors, restaurants, etc, which will all require land. As you may expect, if the area is run down and has seen closures of businesses, then the land will come at a lower cost
- Surroundings – just like a house, the value of land will be affected by what is nearby, with land close to industrial areas or flight paths, for example, having a low value as they’re more susceptible to noise or chemical pollution. On the flip side, land close to schools and local amenities will see a high value for the price of their land
Well, that’s everything you need to know about acres of land, including the all-important answer to ‘how much is an acre of land worth’! Do you have a question to ask? Or maybe some insight to give? Whatever it is, don’t hesitate to get in touch!
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Millie is a perfectionist with a passion for property and writing articles. You’ll find her researching the latest housing trends and the newest up and coming areas worth investing in. Read more about Millie here.