propertytalk Live! - Residential development land price growth slows

propertytalk Live! - Residential development land price growth slows

The rate of growth in English residential development land values slowed rapidly in the final quarter of 2010.

While Greenfield land still managed a rise of 2% during the period October to December, English urban land values fell by 1% and in Greater London the fall was more significant at -2.5%.

According to Knight Frank’s Residential Development Land Index, Q4 the only urban market which avoided price falls was the prime London market which registered no change over the quarter.

The recent slowing in quarterly growth has pulled back annual rates of growth, which had hit 26% in prime London in Q2 2010. Greater London annual price growth ended the year at 4%, down from the 14% hit during the summer.

Despite rising values during 2009 and 2010, average residential development land values as at December 2010 were still 40% below their Q4 2007 peak.