During 2017, urban land values rose 24% in Manchester, compared with the UK average of 4% growth, reports the global real estate services provider.
Savills’ research on ‘UK residential development land’, published in late January 2018, identifies strong house price growth in a relatively affordable market as a key reason behind Manchester’s leading position. The company points out that house prices increased by 8.6% (October 2016–October 2017), more than double the national average (4.2%). The number of land buyers bidding for residential sites across the city has also increased, including competitive offers from housing associations, not just PLCs.
Three further findings
Here’s a quick summary of Savills’ other main research points on UK residential development land.
- Beyond Manchester, land values are increasing faster than average in the North and also in Scotland. The new government body, Homes England, is backing property development in the North of the country to help serve local housing needs.
- Competition for housebuilding land is likely to grow fiercer with a market facing less land and greater numbers of bidding developers, including housing associations.
- Major residential property developers are focusing on strategic land portfolios. Medium-sized housebuilders are acquiring larger sites.
Government support for housebuilding is also set to concentrate on the corridor connecting Oxford, Milton Keynes and Cambridge. Development here may well include one of the new garden towns or villages.