The average value of greenfield development land has declined as demand eases, according to Knight Frank…
The real estate consultant’s latest Residential Development Land Index says the average price of greenfield land dipped by nearly 1% between April and June, bringing the annual change in prices down to -2.4%.
According to the report, these prices reflect the fact that house builders have had access to relatively higher levels of consented land in the last few years.
As a result builders and developers are more selective about the sites they choose to buy.
Grainne Gilmore, Head of UK Residential Research, said: “Buyers are having to factor in higher build costs while maintaining their margins, and this is weighing on land prices.”
There are signs that build cost inflation is starting to level off but developers are still having to factor these higher costs into their offers.
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