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Self Build and Land Market Update Q4 2010

Commentary
With the recovery in the economy to date, apart from self build plots, all land values have risen in 2010, both in Q2 versus Q1 and versus 2009.

Farmland Market Commentary
Farmland values have increased by nearly 20%, mainly due to interest from the international farming community and private individuals. High demand has pushed up prices partly because land availability remains 33% down versus 2009. Knight Frank records suggest that farmland prices have gone up by 13% in 2010 and they belive there will be a further rise of 10% this year.

For property investors it may be worth considering farmland as Knight Frank believe:-

“Farmland has been one of the best performing assets of the past 10 years and people see it as a sensible and secure place to put their money."



Residential Land for Development Market Update
Latest data from Knight Frank shows prices continue to grow in 2010 as developers who are back in profit and have spare cash are snapping up land to build on when the economy improves. However, since the Coalition started to implement their housing policies, demand for land seems to have dropped off.

Liam Bailey from Knight Frank comments:-
"This most recent price growth means that prices for both greenfield and brownfield land have risen by 20% over the 12 months to June this year."

As with property prices across the UK, it seems that the North South divide really does exist as Liam goes onto say "In particular, we believe the northern cities are in for a difficult time as the reductions in government spending start to materialise and cast a shadow over the local economies of those centres which are worst affected".

Self Build Market Update
A lack of finance and fear of buying property has unfortunately - and incorrectly - hit the self build market. While professional developers understand now is a good time to buy it seems that self builders are finding it tougher to make their buying decision.

As a result, plot prices have fallen again in 2010 versus 2009 by around 20%, which is likely to make plots of land exceptional value for money. There might be a light at the end of the tunnel for self buiild in that more lenders have come on board requiring 15% deposits for land and build costs. This seems to be having some impact on the market with self build mortgage enquiries up by 17% this year versus 2009. 

For anyone considering self build, the next couple of years are definitely worth making the effort!  

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

Farmland Values

+17%

2010 vs 2009

Knight Frank

Q3 10

Percentage of Farm Land for Sale

-33%

2010 vs 2009

Knight Frank

Q2 10

Residential Land Prices (Greenfield)

+2%

Versus Q3 10, +18.8% YoY

Knight Frank

Q4 10

Residential Land Prices (Urban/Brownfield)

+1%

Versus Q3 10, +8% YoY

Knight Frank

Q4 10

Self Build Plots estimated value

-19%

Fall from 2009

Plotsearch

Aug 10

Self Build Mortgage enquiries

+17%

Versus Jan-June 09

BuildStore

Aug 10


June 09Sept 09Q4 09Q2 10


Useful Resources
HALIFAX  RICS   KNIGHT FRANK   VOA  PLOTSEARCH

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

 

NALS Conference Chair 2016

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