Demand for land is more polarised in the current cycle than in previous times, with a stronger appetite for smaller sites of 100 units compared with larger sites of several parcels on a multi-outlet site.

The more selective approach by major housebuilders, means that land value growth has slowed following a period of stronger rises. UK greenfield and urban land values increased by 0.5% and 1.6% respectively in Q1 2015.

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^{Source: NHBC, Savills Research, Thomson Reuters}

However, the additional potential demand for land that we are projecting will inevitably lead to higher land values, a squeeze on margins and a choking off of volume growth, unless there is a significant increase in the volume of land that is made available for development in the right places. Hence more land needs to be brought forward for residential development if we are to prevent values from rising too fast and compromising the viability of new schemes. This is particularly important if we are to encourage development for a mix of tenures.