Political uncertainty affecting residential development land prices

Average greenfield development land prices fell by 0.6% year on year in the first quarter of 2019, the first annual decline in two years and likely due to Brexit uncertainty. Urban brownfield land values increased by 0.8% during the quarter, moderating the annual decline to 0.2% but in the prime central London development land market values were down by 2%, taking the annual decline to 7.5%. According to the residential development land index report from real estate consultants Knight Frank house builders are seeking to protect their margins to account for future risks, particularly in the South East.