The value of development land across the UK fell by an average of 50 per cent during the course of 2008, according to the latest figures from the Knight Frank Residential Development Land index.
Outer London was the least affected area, seeing a 40 per cent drop, while urban land in Yorkshire and Humberside experienced the steepest fall at 64 per cent.
The latest index figures also show that urban and greenfield land values dropped by an average of 17 per cent and 14 per cent respectively outside the capital during the final three months of 2008.
Knight Frank head of development research Jon Neale said: “This unprecedented fall in land values, experienced right across the UK, is a reflection of the ongoing problems with securing finance for development and the continuing crisis in the housebuilding sector.”
|Annual change in residential development land values|
Area Urban % Greenfield %
Super prime London -55 NA
Prime London -45 NA
Inner London -43 NA
Outer London -40 NA
East of England -52 -48
East Midlands -49 -47
North East -58 -46
North West -50 -43
Scotland -57 -46
South East -56 -51
South West -47 -44
Wales -53 -46
West Midlands -55 -48
Yorkshire and the Humber -64 -49
Unweighted average (excl London) -54 -47