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Discovering land rental values

One way to discover residential land rental values is to use web sites like Zoopla and find the ‘floor level’ rents. These are in places like the north-east; a three bed semi at Seaham, County Durham, is about £650 pcm. A similar property in BN2 is around £1500 pcm

and London NW4 around £2000. A reasonable assumption would be to take the £650 pcm figure as a base level to cover the cost of supplying the building, with anything in excess being location ie land value.

The £650 base level figure seems to be widespread; it applies in such diverse locations as Ardrossan, Carlisle, Merthyr Tydfil – residential land values can be assumed to be zero over a large tract of the country. When different searches are done, location value starts to appear at places such as Truro, Llandudno and Swansea which are desirable for one reason or another.

Given the size of the residential and commercial rental markets, there is a large and solid body of rental evidence these days.