Savills sees recovery in residential land values
Land values for residential development are recovering, but growth is slow and faltering, according to research by property group Savills.
Savills said average land value growth across all regions was being driven by activity in high value towns and cities, such as Cambridge.
The firm added that its research dhowed that demand was focused on readily developable land and there were deep divisions between the local market leaders and laggers, Savils said.
Annual land value growth across the UK stood at 5.4pc for greenfield land and 1.8pc for urban land by the end of June 2011, leaving values at -45 pc and -52pc below peak respectively.
David Merrick, head of Savills development in the East, said: 'The pattern in the East of England is in line with what's happening elsewhere in the country, with the vast majority of activity confined to building out existing sites. Developers look at two important signals from the market: house prices and sales volume, which is why the thriving micro-climate of Cambridge is particularly attractive here. 'Confidence in these two factors will be the key to unlock new sites for future housebuilding in the region.'