Appetite for buying land among house builders, property companies and PLCs alike has increased so far this year as housing market activity remains positive, according to new analysis from CBRE Bristol.
Land values in most regions have shown slight growth over the first Q1, mirrored by tentative signs of increased activity in the housing market. According to the Council for Mortgage Lenders, gross lending has increased for the sixth consecutive month, with first time buyers now accounting for 42 per cent of mortgages.
Guy Mansfield, Head of Residential land and development at CBRE Bristol, comments: “Land buyers are seeking land with planning consent to add to their reserves, although good quality land in UK regions is of short supply. In the South West, national house builders are hungry for sites that can accommodate 50 – 200 units, but supply of land remains constrained. New entrants to the market have bolstered demand for strategic housing sites.
“We believe that Government housing initiatives will help drive underlying confidence in the market. ‘Help to Buy’ could support around 215,000 further mortgages per year. Although not all of these transactions will be linked to new-build homes, it should strengthen confidence in land buying, as purchasers will look to access an active market.”
