APPETITE for buying land among house builders, property companies and plcs alike has increased so far this year, according to a report.
Analysis by property agency CBRE said housing market activity remains positive.
Land buyers are seeking land with planning consent to add to their reserves, although good quality land in UK regions is of short supply.
The survey said that land values in most regions have shown slight growth over the first quarter, mirrored by tentative signs of increased activity in the housing market.
According to the Council for Mortgage Lenders, gross lending has increased for the sixth consecutive month, with first time buyers now accounting for 42% of mortgages.
Jennet Siebrits, head of residential research at CBRE, said: “We believe that Government housing initiatives will help drive underlying confidence in the market. ‘Help to Buy’ could support around 215,000 further mortgages per year.
“Although not all of these transactions will be linked to new-build homes, it should strengthen confidence in land buying, as purchasers will look to access an active market.”
Richard Conroy, chief executive of Brockholes-based housebuilder Conroy Brook (Developments) Ltd, said: “There is certainly increased optimism within the Yorkshire house building marketplace as people are feeling more positive about prospects for the sector.
“I would agree that there is an increased appetite for the best quality sites in the best areas, but a few key constraints are still creating challenges.
“Finance is obviously still an issue with the smaller house builders facing difficulties in securing the finance to give developments the green light.
“Additionally, the Community Infrastructure Levy, which is certain to come into play, will further hinder the viability of developments moving forwards.
“The ‘Help to Buy’ scheme would certainly provide a boost, although realistically it is just too early to say how much of an impact that will have. Looking ahead I do see the green shoots of recovery emerging but in terms of rising land values, this won’t happen with any great speed.”
