During the first quarter of 2013 appetite for buying land among house builders, property companies and PLCs alike saw a marked increase in the South and activity in the housing market remains positive as a sense of optimism grows, new analysis from CBRE reveals. Across the South land buyers are seeking consented land to bolster their reserves which has led to increased values in Q1 and this has been mirrored by tentative signs of improved activity in the housing market.
According to the latest data from the Council for Mortgage Lenders, gross lending has increased for the sixth consecutive month, with first time buyers across the UK now accounting for 42 per cent of mortgages.
There has been a definite pick-up in activity in the South with significant demand from house builders, although in many areas supply still remains restricted. As a result well located sites, particularly those with consent for greenfield housing and a limited infrastructure burden, are attracting high levels of interest. However, end purchasers have different requirements; volume house builders are keen on consented schemes, with well funded property companies focusing on unconsented schemes. National PLCs and some of the smaller regional house builders still favour smaller developments of 50 to 150 units.
Mark Budden, Senior Director of Development at CBRE in the South, comments:
“Following major financial restructuring and with increasing confidence in the housing market, supported by the Government’s initiative “Help to Buy”, house builders are showing a renewed appetite for land. With land banks depleted as a consequence of limited land purchases over recent years they are actively seeking new outlets.
“Competition for good quality land is now strong and land prices are rising to reflect this. Our Development Department has sold well in excess of £50m worth of land in Hampshire alone in the last nine months.”
