Low-risk housing sites 'will prove popular with developers'
Low-risk housing sites 'will prove popular with developers'
Tuesday, 21 September 2010
12:00 AM
Housebuilders and other developers will concentrate their efforts on low-risk sites for the foreseeable future, according to new research.
Savills Spotlight on Development and Investment report suggests that small sites and services plots will be in the greatest demand for the future.
However, the global real estate firm indicates that although this trend will spur value growth for these kinds of plots, it will not be sufficient to fulfil long-term housing demand in the UK.
The report indicates: "Bulk land has traditionally been the key driver of volume housing delivery, but it is likely to continue facing significant challenges in an environment where debt finance remains limited and regulatory pressures are increasing.
"As a result, we expect the markets for serviced and bulk land to diverge as bulk land values remain static."
Savills' report advocates the introduction of a local community-structured strategy that it suggests could be adopted by government to help ensure affordable homes are provided in areas where they are needed.
Government targets to reduce the environmental impact of new-build property will do nothing to reduce the overall carbon impact of the UK's built environment.
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