Make a difference while making money

These factors make land an increasingly attractive investment opportunity. Shares in land can be bought for as little as £5,000 which translates to a payment of £18.50 per week over a five year period; far more affordable than the average mortgage.

It could reasonably be expected this type of investment could deliver a return of several hundred per cent in the longer term which is significant, even on an initial investment of £5000.

Of course this is a high-risk, long-term investment so is not suitable for everyone, but there is no such thing as the average investor and people use it for everything, from a way of getting on the property ladder to an alternative pension investment.

There is also a growing demand for people looking for their investment not only to have returns but also to be ethical or deliver benefits. The pension service has long had a range of options allowing people to choose where their money is invested and it makes sense for land investment companies to follow in this trend. As a nation we are becoming more socially aware and as land investment companies become more established and build their reputation this type of investment will grow in popularity.

Anyone looking to make an investment of this kind should ensure the land investment company has a good working relationship with the local councils to ensure that land purchased with this type of development in mind is actually on the council’s radar for development and fits with its affordable housing plans for the area.

This does of course raise the question of corruption in the industry, but any company worth its salt will be happy to provide documents to potential investor’s lawyers or financial advisers and should in fact insist on this, especially for first-time investors.

There will always be companies out there that buy up pieces of land that have no chance of ever receiving planning permission and anyone looking to invest in land should do their research in advance. Good companies will work with renowned architects, encourage you to speak to council planners to confirm details of the ground and provide you with all the necessary documentation for your share of the land.

At this point in time, investing in land in the medium to longer term (five to 10 years) has never been a more inviting proposition, especially with other investment options being less attractive.

While this is not an investment opportunity to be rushed into, with careful consideration of the company and input from your financial adviser or lawyer there is no reason why investing in land with an affordable housing clause will not deliver significant returns in the medium to long term.

Mark Wilson is managing director of Intelligent Land Investments