Self Build and Land Market Update Q4 2009

Land values across the UK went up and down in 2009! Farmland continues to outperform development ie building land, with Farmland going up 164% in the last decade, higher than prime London property!

"Cautious confidence" is returning to the land market with developers and speculators starting to buy urban land for development again. This is likely to impact at some stage on self build plots, so if you are thinking of buying land to build yourself, you do need to start investigating and preparing to make a decision this year.

Self build has been hit by the credit crunch, with the average number of properties being built around 14,000 in 2009 versus a long term average of 15-20,000. However, one astonishing statistic is that self build accounts for one third of all new detached homes (detached homes built by private/public sector was in the region of 40,000), up from 25% in previous years.

Meanwhile land prices for self build is at an all time low. Supply was up by 50-60% in 2009, and Plotsearch has over 8,000 plots for sale. The average plot price is now around £130k, 25% lower than 2009 and 35% lower than 2008.

The average plot price in February 2010 is down 11% on the average price in February 2009 and approximately two-thirds of plots currently listed are exempt from stamp duty (ie £125k or less).

Meanwhile, lenders are starting to come back to the self build market with Bath, Melton Mowbray Building Society and Ipswich all having new products. All offer mortgages to fund land and materials purchase between 75 and 95% of the costs. BuildStore's Accelerator mortgage allow you to live in your own home and build your new one at the same time!

Headline Statistics
There are various statistics on land prices, the most useful on farmland is from Knight Frank who track the interest/activity in farmland in general.

Farmland Values


2009 vs 2008

Knight Frank

Q4 09

Percentage of Farm Land for Sale


2009 vs 2008

Knight Frank

Q4 09

Residential Land Prices (Greenfield)


Versus Q3 09, 0.8% YoY

Knight Frank

Q4 09

Residential Land Prices (Urban)


Versus Q3 09, -6% YoY

Knight Frank

Q4 09

Self Build Plots estimated value


Fall from 2008


Mar 10

Self Build Mortgage enquiries


Versus Jan 09


Jan 10

Useful Resources

For more market commentary on a national or local level:-
Contact Kate Faulkner on 07974 750562 or 0845 838 1763. To read more about Kate, please visit ABOUT US, see Kate on video and for media appearances, contact:

Sylvia Tidy-Harris
STH Management                    
Tel  +44 (0) 1530 263221
Mob  +44 (0) 7970 646872
Fax: +44 (0) 1530 264018


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