Residential development land prices rose across England and Wales during Q2 2013, and at a faster pace in prime central London, reflecting increased signs of confidence in the housing market according to Knight Frank.

Land values rose by 4% in prime central London during Q2 with prices for green field land in England and Wales rising by 1.2% in the same period. These increases are the highest quarterly rise in over 18 months and represent an annual increase of 1.8% across England and Wales and 9% in prime central London.

Gráinne Gilmore, head of UK residential research at Knight Frank, said: “Anecdotal evidence over the last few months suggests that construction activity has been on the rise, and this was reflected in the better than expected construction output data in July’s GDP figures.”
This increase in activity has also been reflected in trading updates from house builders, with Persimmon, Galliford Try, Taylor Wimpey and Redrow all reporting better than expected results for the first half of the year.