Knight Frank: Residential Development Land Index
The value of urban brownfield land climbed 4.9% in Q4, amid strong rises in Birmingham. The average value of English greenfield land edged up by 1.4%, while land values in prime central London dipped by 2.1%.
Key facts Q4 2017
- Urban brownfield land values rose 9% in 2017, the highest rate of annual growth since Q3 2014
- Greenfield land values climbed 1.4%, taking the annual change to +2.6%
- Land values in prime central London declined 2.1% in Q4 after three flat quarters. The annual decline was also 2.1%
David Fenton, UK head of Regional Land at Knight Frank, commented: “Across the UK’s major regional cities, we are seeing an increase in development activity and a drive for acquisition from the housebuilders. In particular, Birmingham, Manchester and Leeds, markets which are underpinned by strong employment credentials, relative lack of stock and high speed transport connections.
“Yet, affordability and quality of life on offer is driving the investment agenda, with developers continuing to look carefully at each opportunity before committing. Sentiment among developers is positive, however, they are much less inclined to take a view and the opportunity’s fundamentals have to be right. The balance has become more sensitive.”