What IS THE land market doing - May 2021 ?

Industry ​sources which Landsite has recently been speaking to are saying that land with planning for residential development is being competitively priced as the Coronavirus 'lockdown' eases.

Two major plc housebuilder Land Directors have separately told Landsite that they have witnessed sites being sold for record prices in recent weeks and one Managing Director has confirmed that he has been informed by colleagues in charge of other Regional Offices that they think land prices are rising as competition for the best sites increases.

Se this against the slow, slow world of planning and the restrictions of the greenbelt and it is no surprise that the housing land supply for a growing number of District and Borough Councils is falling below the important 5-year supply deadline/requirement.

Land prices per acre which may be currently around £750,000 per acre (with planning) may therefore begin to edge towards the magic one million pounds per acre mark soon.

For some latest news on prices see :
www.housingtoday.co.uk/news/residential-land-value-grew-in-fourth-quarter-of-2020/5110122.article
https://mspcapital.co.uk/land-development-prices-on-the-rise/
www.savills.com/research_articles/255800/310310-0

What does this mean for prospective landowners who have land with potential for residential development ?

Well good news in that not only will land values keep rising for land with planning permission but the offers to enter into Option Agreements of Promotion Agreements with the Land Promoters, housebuilders and developers will be ever more generous and competitive in order to persuade landowners to run with their company rather than another.

There are probably over 150 land promotion companies in the UK today varying in size from large, plc-backed firms employing perhaps 30+ specialist staff to smaller one-man businesses with some family or private funding behind them.