Residential Land Values in East England

When you look at the east England area of the UK, the past six months has shown a quiet residential land market. With just a few sales main for small, infill plots, not much change has occurred. Let us look at some of the regions within the east England area. Take Grays as an example. This region has seen a number of Brownfield site sales and even land sold to a housing association. While the overall market in that region has remained quiet, some believe value for flat development is rising, due in part to the availability of planning approvals for more population.

Then, you have Basildon, another region in east England with little activity. The sales that have occurred have been for small sites. Considering static prices for housing, land value has generally seen no change. For Brentwood, sales are extremely limited. Even so, most believe the majority of any land value increase is in the districts around this region, primarily because of residential value being undercut by the commuter options to London.

For Saffron Walden, the housing market is going steady, which just a few smaller plot sales. However, because we see this region gradually growing, land value is also beginning to increase. In addition, a second runway at Stansted has been proposed, along with the close location to the M11, which most believe will increase the demand and sale of all land categories.

Now if you head to the south for Epping Forest and Chelmsford, most residential land sale has been for small plots and other land sites that will be used specifically for flats. With more and more opportunity for increased planning densities and the lack of available land, values are taking an upward climb. Harlow is another region in east England that has few land sales, specifically in the past six months. Because of this and a flat housing market, any value will be unchanged.

If you look at Norfolk, bulk land sales are also limited. In instances where a sale does take place, value overall has been insignificant. However, because small infill development is limited, the values are staying strong. The interesting thing there is that most people believe while the values are strong, they will likely not increase.

The number of residential land sales has also been limited in Peterborough, Huntingdonshire, and Fenland. Because of this, we see an ongoing trend of incentives being offered by national house builders as a means of getting the property sold. We do see individual site sales climbing, as competing buyers continue fighting for limited land. Even with small infill developments being in great demand, the average prices are not showing any upward trend.

For areas of Castle Point, Rochford, and Southend, bulk land sales have been limited or nonexistent. For the few sales that have occurred, most have been for small sites, primarily for one, possibly two properties redevelopment. Then when you look at Cambridge, you would find two impressive Brownfield sites sold that are located near the railway station, making them a huge convenience.

In addition, the redundant flourmill located by the railway station is going to be transformed into several things, one of which is a cultural centre. In the past year, Cambridge has seen a number of land sales. In addition, we know the demand for high density, easy access facilities to London, and multipurpose sites will continue to climb. Being in close proximity to various sites as well as the convenience of transportation to and from London, Cambridge is an important residential land region.

In both Cambourne and Ely, we see an ongoing demand for larger sites. However, South Cambridgeshire has been quiet regarding residential sales, which with the three areas combined housing prices have actually levelled off. For Colchester, Braintree, Maldon, and Tendring, we have seen few current land sales. Even so, several land development projects are underway. What this tells us is that builders are showing some degree of caution. This also tells us that builders are using more conditional offers, although interest in residential land of any kind in this area remains.

The last two regions in east England include Ipswich and Suffolk. For land sales in Ipswich, most have been Brownfield sites. Of these, the majority have involved existing commercial property being converted although some new building has taken place. For Suffolk, only a few residential land sales have occurred in recent months. Experts believe that with the rate of finished property sales slowing down, bulk land is being impacted.

Even so, it appears as of now the county's east side is seeing more sales and growth than the east area. However, demand for individual plots remains a serious factor although the amount of plots is constantly being depleted. Keep in mind that for local builders, the greatest demand is for infill sites that can accommodate five or fewer structures.

- James M

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