Posted on 01/05/2019 12:26:39

Residential Development Land remains robust outside of London despite ongoing political uncertainty.                                                 

New data from our strategic partners Savills reveals land values have remained stable across the UK; however, they are still falling in central London. Quarter 1 2019 saw land values for UK greenfield and urban land changed very little, growing by just 0.2%, bringing annual growth to 1.3% and 1.8% respectively.

Scotland continues to outperform the national average. Land values have increased by 0.5% in Scotland in Q1 2019. This bodes well for our Land Club Bond, as we already have projects lined up to invest into, and one such project is located just outside of Glasgow, Scotland. The site in Moodiesburn in North Lanarkshire is situated a residential suburb located 8 miles north east of Glasgow City Centre and primed for a mixed-use residential led scheme. The GDV of this project is £84.2m. Investors should note that investing with Land Club puts your capital at risk and returns are not guaranteed.

In response to the changes to Help to Buy from 2021, some housebuilders are also re-planning sites to include more smaller units that will qualify for Help to Buy under the new regional price caps. This will be taken into account in Land Clubs approach to planning gain and negotiating with local councils. 

Whilst housebuilders are displaying less appetite due to market uncertainty, Housing Associations are continuing to be active in the developmental land market. Housing Associations provide affordable housing to those on low incomes or with particular needs. Grant funding, the £3 billion of funding for the Affordable Homes Guarantee Scheme and the strategic partnerships programme, has provided HAs with greater funding clarity and confidence for the long term against the wider market backdrop of uncertainty.