Much of the hefty decline in urban development land values over the past year has come in the last three months when they fell by -15 per cent outside of London, according to a report from Knight Frank. The total annual decline, also outside of London, was -33 per cent.
Within the Capital, Inner London experienced a -10 per cent fall in values over the last year, compared to Outer London's -15 per cent decrease.
Knight Frank also notes that the most sought-after sites in the Capital, those in the super-prime category, have continued to maintain massive values of up to £100 m per acre, thanks in large part to their constricted supply amid high demand.
Regions that haven't fared so well include Yorkshire and the Humber, where greenfield land has declined by -48 per cent in value over the last year and urban land by -49 per cent.
Land values in the North West have also been performing poorly, with falls of -41 per cent for urban land and -36 per cent for greenfield.
Speculators Sniffing For A Bargain
Prospective buyers are only biting for well-located plots of land with planning permission which are currently few and far between, says Knight Frank.
Of those who are buying, 29 per cent of vendors were made up of developers and housebuilders, while Government agencies and local councils still held the majority share of 31 per cent.
Knight Frank also highlights how Housing Associations have been busier of late, with their share outside of London increasing to 30 per cent compared to 16 per cent last year.
Speculators too have become increasingly attracted to the market, accounting for 21 per cent of buyers nationally. This increases to 50 per cent within the Capital where the potential for grabbing a forced sale piece of land at a bargain price is greater.
Jon Neale, head of development research at Knight Frank, comments: "The lack of activity among housebuilders is exacerbating the undersupply problem that still faces the UK, despite the downturn in the sales market.
"In the long-term, this will create a strong demand for new build property. Meanwhile, there are still insufficient development sites to cater for this long-term housing need, particularly in London.
"It is unsurprising that speculators are already active in the market. However, there are a larger number of cash-rich players who have yet to enter the fray, although they are watching prices very carefully.
"Values are likely to continue to fall, albeit at a lower rate of around ten per cent over the next twelve months.
"The regions that have suffered the earliest and most dramatic falls, such as Yorkshire and Humberside, may be among the first to see recovery."
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