Land is expensive, and the closer to transport links, amenities, schools and shops it is, the more you have to pay. In addition, land often only comes up for sale in large parcels, which are both too large and too expensive for the average investor.

This doesnt mean that buying land in order to build your own home, or just to sell on for a profit at a later date is completely out of the question. Depending on what youre looking for, you can take a step on the land-holding ladder.

Building plots

If youve decided to build your own home or business premises, you first need to secure a plot of land. Whether your aim is to live or work in the property, or to sell it on once it is completed, you will need to find a suitable plot in the right location. You can do this by visiting estate agents or specialist land agents. Just like buying a property, you can talk to them about your requirements and they can match those with the land currently available. You will need to check whether planning permission exists for the site, and if not, the likelihood of approval to build being granted. Your plot is unlikely to increase in value if you cant build on it.

Land investment

If youre just looking for an alternative investment vehicle, then you should consider land investment. Many UK land agents are now offering the opportunity for smaller investors to buy a parcel of land within a larger area owned by a single company or developer. This land may be targeted for development at a later stage and is usually in a key location, where its value is forecast to increase. This type of land is usually either too large or too expensive for small investors, but they can afford a small parcel of the land which they can then sell on again at a later date, hopefully making some profit along the way.

If you are a private investor and you are considering adding land to your portfolio, speak to a land agent for more advice.