Accessibility:- This is one of the most important factors when looking at any building plots for sale. If the plot is not accessible then it is worthless. Location is key as well as price. Also you have to consider if the plot is realistically going to gain planning permission. So before you invest any money these things need to be thought through.

How do I know the plot’s value?
This is relatively straightforward to gauge as plots gain their value from the dwelling that will eventually be built on it. That dwelling will be based on similar houses in the area and what they achieve on the open market. A quick call to an estate agent in the area can tell you which types of houses sell best, what the asking prices were and what the actually sold for. Land Registry is also a great help. Online, and can also be of great assistance.

Plots are like houses as they have a ceiling value, this is seen as the price beyond which it is no longer economically viable. Obviously it all depends on the area you are looking at as plot prices vary from locality to locality. You will need to be familiar with plot prices in your area so that you know that you are making a healthy investment, if you need help on comparables simply email us at and we will get back to you with all the relevant information. Always have an idea of what type of house you want to build and look at building plots for sale that reflect that, you need your house to fit in with other houses in the area for planning purposes and also if you decide to sell later on. If you spend a fortune on a large six bedroom house in area where there are mostly four bedroom houses, when you come to sell you will not get much more than the average asking price so be aware of this. Try not to “over-develop” the plot but also do not under-develop the plot either, maximise the plot’s potential.

Will I profit in the end?
The profit margin has always been the third, third, third, rule. This translates as roughly one third for the plot, one third for build costs and one third equity. Now things have changed, as already discussed regional variations of plot values affect this and also plot availability. There are simply not enough good quality building plots for sale to meet the demand. For example, if you lave in an area where there are lots of building plots for sale and property prices are quite low then the plot price can be around a quarter of the value of the final house. However unfortunately if you live in an area where building plots for sale are few and far between then expect the price to rise. Sometimes the plot value can be 50% or more of the final value of the finished home. When building costs are added to the cost of the plot, the profit margin in terms of a percentage yield, related to expenditure, are still around the 30% mark. It is balanced out though by the huge differences in land costs but small variations in build costs between different areas, but the high market value of the finished house in the different regions is noticeable.

Author's Bio: 

Miss Fiona Davies is Sales Director for
She has worked in the property and land sector for the last ten years.
All articles on the website are written uniquely by her.