Hundreds of thousands of new homes need to be built in the UK every year but a new research report suggests that house builders are facing rising competition for land.
The Government’s desire to see 300,000 new homes a year built in England, a 38% rise from where we are now, will obviously boost demand for land. To maintain benign conditions, therefore, we need to see much more land being brought forward, with more planning consents in the areas where demand is highest.
This is contributing to rising urban land values. Across the UK as a whole, urban development land values rose 0.5% in the final quarter of 2017 and 4% across the whole year, more than double the growth in greenfield land values.
At the same time, London developers have been moving beyond the capital, supporting or pushing up land values in markets such as Woking, Guildford and Chelmsford, often building flats for London commuters seeking more affordable accommodation.