Land value down 40%

macaque_2

Interesting!

The average value of land for new homes is still 40 per cent below its peak at the end of 2007, according to a new survey by Knight Frank.

http://www.themovechannel.com/news/1133e73d-b734/

michaels

Of course - land price is the bit that changes directly with house prices. Suppose land costs 50% of selling price and and selling price falls 20% land will fall 40% QED

daveyjp

Materials costs haven't decreased, funders have increased demands in terms of returns on developments - in the boom time if developers could show as little as 8% return they could secure funding, it is now 15-20%. This coupled with a decrease in end values in some parts of the Country mean land values have to drop.

Do the sums in many parts of the Country and land isn't worth a bean.

Nosht

Farm Land is at an all time high.

N.

John_Pierpoint

Yes it may well be 5 figures now but prime building land in Surrey was probably worth 80% of the £1,000,000+++ retail price of the house built on it. So that will be something between 100 fold and 1,000 fold increase in value for getting planning permission.

I often wonder if harm land keeps its high price, in relation to the value of the food grown on it, because of the inbuilt subsidies for doing nothing much at all and the freedom from InHeritance Tax on the farmer's wealth locked up in owning the land ?