The price of prime residential development land in the Midlands has risen by up to 30 per cent in a year – with Solihull, Hagley, Sutton Coldfield, Warwick and Leamington prime sites.
Land price rises across the region are typically around the 20 per cent mark, but the top addresses are fetching a premium significantly above mid-market addresses, says Adrian Willet, senior director in CBRE’s national land and development team.
Gross land values for serviced residential development land is now in excess of £1.5 million per acre across the very best postcodes of the West Midlands, Warwickshire and Worcestershire. And demand for land has increased as house builders seek to deliver more product on the back of the improving economy. Some buyers are now seeking bigger sites to give them a three-year supply.
Mr Willet said: “‘Big is best’ is now the mantra for site acquisitions, with housebuilders looking to deliver around 75 units a year from a single land holding over three years. Competition for these sites is intense, and the best sites are typically attracting demand from 8 to 10 of the region’s volume house builders.
“Overall land buying targets for the volume housebuilders have increased from 450 plots per annum in 2009/10 – with a hefty bias towards social housing – to 700 to 800 plots for the biggest operators, with 75-80 per cent earmarked for open market sales.” CBRE say the increased acquisitions are being driven by the improving economy and easing lending conditions.
