Wednesday 14 June 2017
Demand for new homes in regional cities has boosted the price of urban land, with smaller housebuilders snapping up almost double the amount of land in the last year due to increased Government funds and more accessible finance.
Research by Savills found that the price of urban land is up 4pc year-on-year, compared to a rise of just 1pc for greenfield land, as buyer demand focuses on regional cities.
It also found that small housebuilders bought 89pc more land in the last twelve months than the year before, boosted by the Government's Home Building Fund to help smaller firms with little equity. Medium-sized builders also bought 22pc more sites than last year, and are increasingly seeking out larger sites.
Demand is highest in Birmingham, Manchester and Glasgow where international developers are pouring money into developments to rent.
Bristol has emerged as "the next target" for such investment, according to Savills. This is because of the strong economy and job market there which has translated into high levels of house price growth, up 14pc in the year to April, according to the Land Registry.“The rise of strong regional cities and the growing mismatch of supply and demand in many of those cities, is boosting demand for land for housing and, in turn, urban land values,” said Lucy Greenwood, Savills' residential development research analyst.
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