UK developers concerned by lack of sites
Most recent research has revealed that UK residential development land has risen in cost for the second consecutive quarter but is still nearly 50% below the height of prices seen in 2007.
One of the reasons for the increase is the number of developers, alarmed about the depleted level of current and future stock supplies, rejoining the market trying to buy land with planning consents already in place.
There apears to be a stale-mate situated going on between land owners, who are holding on to land in the hope that prices rise even further over the next year, and buyers who are struggling to find financing preferring to postpone payment through overage agreements or instalments.
While the news is good that the property market in the UK is seeing this level of activity after so many months of recession it will take a period of time before building capacity is reached.