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9th August 2021
The UK has seen the value of residential development land soar as a result of an exceptionally strong housing market coupled with strong demand for land and a lack of immediate sites. This is good news for those looking to sell land according to Estate Agents and Rural Surveyors – Roger Parry & Partners.
UK greenfield as well as urban values increased by 1.7% and 1.8% between April and June 2021 respectively, marking the strongest growth in greenfield land values since 2014.
Richard Corbett, Partner with Roger Parry & Partners said, “This latest news on land value increases is just what potential sellers want to hear. It shows confidence in the current land market. There is still a shortage of supply of development land across the country driving competition and upward pressure on values. More new sites have been brought to the market over the last quarter but there is still a scarcity of immediate land available to buy relative to the level of demand for sites.”
Demand for land has increased over the last quarter as all sectors continue to seek land opportunities. Against a backdrop of limited stock, there is demand and increased competition for sites.
Although appetite remains for bulk sales for Build to Rent and affordable housing, developers have favoured open market sales opportunities supported by the resilient housing market. Deferred payments are still being offered, however as land sales have become increasingly competitive, some vendors have been able to negotiate more favourable, upfront payment terms.
High new home sales rates averaging 0.84 sales per outlet per week in April 2021, robust order books and completions, have brought forward land purchasing requirements for many housebuilders.
Major housebuilders have deployed capital into new land opportunities, with some investing at rates ahead of previous years in order to match ongoing demand for new homes and to meet medium-term growth targets.
If you are looking to sell land and would like to use the professional services of Roger Parry & Partners to help with your sale, please get in touch. Alternatively, if you are looking to buy land we have plots and development land for sale.