Led by Scotland, the UK sees considerable growth in its residential land prices.
The UK residential land market is reflecting the shape of the housing market, as values fall in central London but continue to rise in other areas of the country, with Scotland leading the way, new research from Savills has found.
According to Savills research, house prices in Scotland have risen by 5% this year, making it the strongest-performing part of the UK. This, in turn, has supported land price growth. Already aware of this growing market, Land Club sought out a project in the region.
Greater Glasgow has witnessed transactional growth in higher price bands, thus leading to rising house prices. Activity above £200,000 increased annually by 12% whereas prime transactions above £400,000 increased by 23%. This resulted in 6% annual growth in the average transaction price during the year ending June 2018 (Savills).
Our Land Club Bonds already have projects lined up to invest into, and one such project is located just outside of Glasgow, Scotland. Moodiesburn in North Lanarkshire is a residential suburb located 8 miles north east of Glasgow City Centre. The 60-acre site currently has outline planning consent for 480 Dwelling Houses, 1 Supermarket, 5 Retail Units, 2 Restaurants, a Health Centre and a Petrol Station.
Utilising our planning gain ability, the plan for this project is to apply for the detailed planning consent and satisfaction of conditions, having already secured the outline consent. The detailed application was submitted on 1st June 2018 and we anticipate 4-6 months for approval. The detailed consent is seeking approval for an additional 100 to 580 units. We are also negotiating an option to sell one Area to a national housebuilder. At the same time, we will explore a revised master plan to further optimise the site.