Urban land value sees rapid fall
THE rate of growth in English residential development land values slowed rapidly in the final quarter of 2010.
Greenfield land still managed a rise of two per cent during the period October to December, but English urban land values fell by one per cent and in Greater London the fall was more significant at -2.5 per cent.
The only urban market which avoided price falls was the prime London market.
Liam Bailey, Knight Frank’s head of residential research, said that funding problems continue to provide major difficulties for developers but added land transactions are likely to rise as supply from receivers begins to edge higher.