The value of English greenfield land climbed 0.9% between January and March, while land values in prime central London remained unchanged and the average value of urban brownfield land rose 0.4%, according to Knight Frank.
Average greenfield land values in England climbed 0.9% during Q1 2018, aided by demand for oven-ready sites with access to infrastructure. This took the annual change to 2.2%, down from 2.6% in the year to Q4 2017. Uncertainty over the future of Britain’s relationship with the European Union is likely to weigh on future growth in values, with house builders taking an increasingly selective approach when bidding for land as they adjust to perceived risk in the market, the firm reported.
The Help to Buy Equity Loan scheme has continued to contribute to sales rates, though developers are now embarking on projects due to complete after 2021 – when the scheme is currently stated to end. Uncertainty over the future of the policy is likely to be reflected in English greenfield land values in the coming quarters, coupled with house builders factoring into their margins the unclear economic picture ahead.