The growth in land values moderated across England and Wales in the final quarter of 2014, reflecting the movement in the wider housing market. However residential development land values in prime central London continued their strong growth, ending the year up 24%.
In prime central London however, the trend is very different. Average residential development land values rose by 24% in 2014, this is up from a modest 2.5% increase in 2012. This takes the cumulative increase in land values since September 2011 to 48% – although this is still lagging the 72% increase in residential property prices seen since the trough in the market after the financial crisis.
Key facts Q4 2014:
- Land values in prime central London climbed by 6.4% in Q4 2014, taking the annual rise to 24%
- Land prices in prime central London up 48% since September 2011
- Average greenfield residential development land prices up 2.3% in 2014, after a 5.3% rise in 2013
- Prices rose by 0.1% in Q4, the most modest growth since Q4 2012