Development land in central London rises faster than house prices

Central London residential development land values have risen at a faster rate than underlying house prices over the past year, also outpacing growth in both office and hotel land values, new analysis from international real estate adviser, Savills.

By contrast, residential land prices remain suppressed in other locations, including Greater London.

Central London residential locations have seen values rise by 4% over the last 6 months, and a total of 17% over the past year compared to 2% mainstream house price growth.

‘Although central London land price growth has exceeded house price growth values remain 10 per cent below peak, suggesting scope for further growth,’ said Yolande Barnes, head of Savills residential research.