The latest UK residential development land report by Savills has revealed that urban land values are rising strongly, most notably in the Midlands, due to regeneration, competition from the Build to Rent and student sectors, and London developers looking beyond
Focused growth in greenfield land values
During the past quarter, greenfield land values in the UK have grown by 0.8%, rising from 0.1% in Q4 2017. Growth has been focused in Scotland and the Midlands, particularly where recent house price increases have been stronger.
In the west (West Midlands and South West), greenfield land values increased by 1.3% in Q1 2018. In Coventry, Solihull and Leamington Spa, land values have grown by more than 7% in the past year. In 2017, house prices in these places rose by 8.5%, 7.6% and 5.1% respectively, outperforming the national average of 4.1%.
Scottish greenfield land values are also increasing above the UK average as house prices grow faster than in London. In Q1 2018, greenfield land values increased by 2.8%, rising for the first time in the last year.