26 October 2023.
The Savills third-quarter 2023 report on residential land in the UK reveals a 39% decrease in transactions, fewer sites entering the market, and a 22% decrease in planning consents in England. The sites in highest demand are those ready for immediate construction.
Residential land values in Central London have fallen by 8% over the 12 months leading up to September 2023, and in Outer London, the decline is even steeper at 15.6% during the same period. Weaker sales, rising mortgage rates, and the end of Help to Buy are cited as the primary reason for this. There is still demand from cash-rich and privately funded buyers, and developers are actively seeking sites for student housing and co-living.
In the six months to September 2023, land prices for offices in Central London and Outer London have fallen 16.3% and 22.4%, respectively. The declines for the year ending September 2023 are 31% and 40%. The cause is attributed to the increased cost of finance and labour.