High demand sees soaring prices for greenfield sites in East Anglia

A study by Savills showed the region's greenfield land market outpacing every other region of the UK with a substantial 12.4% uplift in values year-on-year to the end of June 2022.

That compares with a UK average of 9.9%. Meanwhile urban land values in the East also rose by 7% over the same period - compared to the national average of 7.4%, according to the land agents.

Latest quarterly figures show the region's greenfield land market growing in line with the UK average of 2.2% while urban land slightly outpaced the national average with a 2% rise compared to the 1.9% average.

A 6.3 acre greenfield site in Greenfields Road, Dereham – sold last year to Matthew Homes with permission for 48 homes (Image: Savills)

Savills described the current land market as "cautiously positive" - fuelled by competition for sites, limited supply, high house prices and a demand for homes.

But it warned that the sector was under mounting pressure from a number of factors including rising cost of building work, the end of Help to Buy support for first time buyers, high inflation and the prospect of slower house price growth.

Richard Shuldham, senior surveyor with the development team at Savills Norfolk (Image: JON PAUL LADD 20165)

Richard Shuldham, of the development team at Savills in Norwich, said competition was likely to support growth in land values - but cost pressures could start to weigh down on the market.

“There is still a general shortage of land for residential development relative to demand which is fueling competition,” he said.

“In some areas sites have been slow to come through the planning system – particularly in places impacted by nutrient neutrality within Norfolk – and until mitigation policies and strategies are in place this will only intensify the scarcity of land.

“However, there are signs the landscape may be changing. Demand for development land remains strong but with slowing house price growth and wider economic uncertainty this could mean capacity for further land value growth is somewhat limited over the next few years.”

Andy Redman, Savills head of development across Suffolk and Essex (Image: Richard Marsham - RMG Photography Tel - 07798 758711)

Andy Redman, who leads the development team at Savills in Suffolk and Essex, said the land market in the East of England was robust - especially for prime sites close to existing infrastructure and good transport routes such as the A12 and A14.

“We have seen interest from a range of potential buyers,” he said.

“Major housebuilders are still proving to be very active and are seeking both immediate and strategic land to build up pipelines and provide security of land supply, but housing associations are also becoming increasingly competitive as they look to fulfil their delivery targets over the next five years.

“Build to rent developers are also seeking opportunities for single, family home led sites, while alternative uses which perhaps have the benefit of less onerous planning requirements – such as life sciences, industrial and logistics – are also increasingly competing with residential developers.”