As things stand at present, there is a shortage still of sites with planning permission and this is underpinning prices paid by housebuilders to landowners for their development land. This applies whether small or large sites, although there is particular interest in sites with permission for say 50 houses upto around 300-400 units. It will be interesting to see how the land market reacts to the tapering of the stamp duty holiday in September, the ending of the furlough scheme, interest rates, the vaccination programme and to employment levels.
Experience from the 2008 recession suggests that there could be increasing disparity in development values between some regions as a result of any economic adjustment but regional hotspots will remain. The underlying undersupply of new housing sites by many local planning authorities against their 5 year housing targets will inevitably lead to land values being buoyant for the moment.
We act for client landowners in selling their sites to housebuilders and we would be pleased to have a chat about how we can help with your site.
Please contact Nick Harper at Hawkspur – nickharper@hawkspur.co.uk
