Uptick in Development Market

Graves Jenkins’ agents and valuers are cautiously reporting an improving picture in the residential development land market following the downturn in 2022/23.

Confidence appears to be returning to the market, our agency team now reporting increased activity from both developer clients acquiring sites and in the availability of opportunities. Our valuers have also noted a jump in enquiries for valuations of new residential development sites as 2024 progresses. Although our agents continue to report that deals are taking longer to progress than in previous years, it is hoped the recent improvement in enquiry levels will soon translate to a higher volume of completions.

Despite the improved sentiment, the number of land transactions across the UK has remained low during the first half of 2024. Increased building costs and finance continue to impact developers. The Home Builders Federation reported 237,000 planning consents for new homes in the year to Q1 2024. For the first time since 2009 this figure is below the number of houses completed in the same year, suggesting a reducing pipeline of new homes.