The competition of housing land in key cities across the UK, including London, is resulting in an increase in the values of the property. Latest data released by real estate consultancy firm Savills indicate that housing land in several cities in the UK are witnessing double digit growth while in London the prices are stabilising.
This means that land buyers are focusing primarily on well-connected urban sites as developers and investors seek opportunities for house price growth beyond London.
Savills data shows that Birmingham, Manchester and Glasgow have seen the highest residential land price growth as Build to Rent, urban regeneration and infrastructure improvement initiatives are fuelling the demand for housing land.
The residential land values increased by 15 per cent year-on-year in Birmingham, Manchester and Glasgow when compared to house price growth of between 6.3 per cent and 9.4 per cent. However, all the three cities are still witnessing shortfall in housing.
This high demand for land infers that the developers are now considering sites that have been previously overlooked by them. Overall, urban land values increased by an average of 1.8 per cent during the first three months of 2017 and 4.4 per cent year on year, across the UK.
Across the UK as a whole, urban land values rose by an average of 1.8 per cent in the first quarter of 2017 and 4.4 per cent year on year. Greenfield land values grew by just 0.4 per cent and 1.3 per cent in the same periods