Central London residential development land values have soared by 17%, but in the rest of the UK prices remain suppressed.
Land prices for residential developments in central London rose by 17% in the 12 months to 30 September, outpacing office land values, which climbed 15% from the previous year, and for hotels, which increased by 10%.
During the same period, house prices grew by 2% in the capital, Savills’ third-quarter development land value report reveals.
Outside of central London, growth of greenfield land values slowed to 3.2%, compared to 15.1% in the year ended 30 September 2010.
Yolande Barnes, head of Savills’ residential research, said: “Without sufficient incentives, and with the scaling back of public regeneration funding, the most challenging sites will be further marginalised, and are likely to remain ‘underwater’ for the foreseeable future.”
Savills has forecasted a shortfall of 1.4m homes by 2022.
joanna.bourke@estatesgazette.com
