Central London residential development land values fell slightly, by 1.5%, in the six months to March 2016 leaving values 30% above their 2007/08 peak, whilst land buying activity is increasing in the outer boroughs.
Land value for office development in central London has been catching up with that of residential but growth slowed to a 0.6% increase in the half year to March 2016 due in part to the recent Stamp Duty changes for commercial land and property.
Urban and greenfield development land values increased at similar rates in the first three months of 2016. Urban development land values grew by 1.0% in Q1 2016 and greenfield values rose by 1.0%, delivering annual growth of 7.5% and 2.6% respectively.
We forecast average greenfield land values in the UK to increase slightly faster than house prices over the next five years if recent trends prevail.
Source : Savills