According to the data released, development land prices in prime central London also stalled in the first three months of the year.
The average greenfield residential development land prices fell by 1.8% in Q1, taking the annual change to -0.5% and land values in price central London remained unchanged in Q1, the first time they have not risen since the index began in 2012.
On an annual basis, prime central London development land prices up 18.5% in Q1
Gráinne Gilmore, head of Knight Frank UK Residential Research, commented: “On a short-term basis, the development land market, much like the housing market, has also been affected by the upcoming election, with some developers and housebuilders deferring decisions in recent months until the outcome of the election is clear.
A theme that is set to continue through the election and the rest of the year is the increased cost of building. Material and labour costs continue to rise, and this is also putting downward pressure on land prices.”
