Land value growth spreading to lower value markets
■ 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.
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