Market in Minutes:

UK Residential Development Land

UK Residential Development Land
UK Residential Development Land

26 January 2017, by Lucy Greenwood

Land for housing back in demand but buyers more selective

■ The development land market has returned to more normal conditions at the end of 2016 recovering from the market caution immediately after the EU referendum.

■ However, land buyers are being more selective, seeking more due diligence and negotiating deferred payments in many cases, resulting in land sales taking longer to complete.

 

■ Urban land values have increased more strongly than values for greenfield land over the last quarter picking up from the slow or negative growth in Q3 2016 following the Brexit vote. This has been led by growth in regional cities including Birmingham, Manchester and Glasgow.

■ The strongest demand is for oven-ready sites in established residential areas or close to good infrastructure. Generally, there is less demand for sites in more rural or economically weaker markets and for those needing remediation.

■ The PLC housebuilders have been more active in their land buying activity after pausing in the summer and early autumn, albeit they are able to be more selective about sites. Generally, there is sufficient land availability to replenish their land pipelines.

■ In areas where there is less intense competition for land, more land owners are engaging with joint venture agreements with developers, to generate higher land value over a longer period.

Articles from Market in Minutes: UK Residential Development Land

A recovering market

26 January 2017

A recovering market

The development land market has returned to more normal conditions at the end of 2016

Different builders

26 January 2017

Different builders

The PLC housebuilders have been buying more land in the last quarter of 2016

Outlook

26 January 2017

Outlook

New homes delivery is set to increase and more land is needed to replenish stocks

 
 

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Key contacts

Jim Ward

Jim Ward

Director
Residential Research and Consultancy

Savills Margaret Street

+44 (0) 20 7409 8841

 

Susan Emmett

Susan Emmett

Director
Residential Research

Savills Margaret Street

+44 (0) 203 107 5460

 

Lucy Greenwood

Lucy Greenwood

Associate
Residential Research and Consultancy

Savills Margaret Street

+44 (0) 20 7016 3882