Developers jump on 54% of available land plots - but opportunities are still available
54% of all available land plots listed for sale across England have already gone under offer or sold subject to contract to developers.
This was discovered in new research compiled by HBB Solutions. during the analysis of current land plot stock listed for sale and what percentage had already gone under offer or sold subject to contract.
The research shows that nationally, demand for land ready for development sits at 54%, with over half of all plots already receiving an offer or seeing that offer progress.
Chris Hodgkinson, managing director of HBB Solutions, says the results are to be expected considering that the nation is in desperate need of more homes.
“Of course, this means more competition when it comes to securing a plot and it’s fair to say that finding a cheap plot is the property equivalent to the pot of gold at the end of the rainbow,” he comments.
“However, a strategic and methodical approach can pay dividends in the long run and there are a few key things to consider when looking for that next piece of developable land.”
Hodgkinson advises developers to set out their specifications so they have a clear plan of action that can be easily adjusted depending on what is available. He also recommends finding out what land is available in the desired area and walking around it.
“Don’t discount brownfield sites, as they aren’t all derelict warehouses and factories,” he says. “Research prior planning history for both your desired plot and other plots or developments within the local area to give you an idea of what you might come up against.”
“When you do find that ideal plot, be prepared to pay for it and have your financing in place, as well as the right team of professionals to help you execute.”
But whilst this research has focused on the locations where competition is fierce, it also provides a peek into the locations where 60-70% of developmental land is still available such as Tyne & Wear (70% of plots are available), Surry, Berkshire and even London (60%+ availability).
The Levelling Up Secretary Michael Gove has recently admitted that the government is unlikely to achieve their house-building target set out in the 2019 Conservative manifesto, for "300,000 homes a year by the mid-2020s".
"The government will miss their 300,000-homes-a-year manifesto pledge by a country mile," former Housing Secretary Robert Jenrick told MPs recently.
Whilst the government's targets are likely to be missed, there is still the demand for new homes and land development. If you're looking for land to develop on, there are still locations where competition is less intense and more plots are available.
References
property investor today @ bit.ly/3LUnkdk
showhouse @ bit.ly/3GpiSSU
hbb solutions @ bit.ly/3wQNWro
finbri @ bit.ly/3afpeYW
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