The value of residential development land in England has experienced a strong increase in recent months, indicating a further recovery for the UK property market.

The report, carried out by Knight Frank Residential Development Land Index, has reported that the first three months of 2010 has seen the value of land rise by 2.4 for urban space and 6.6 for greenfield land. This represents an 11.5% increase from the value of land in March 2009.

Liam Bailey, head of residential research at Knight Frank, commented: “House price growth has certainly helped but it is the supply and demand dynamics in the land market which is really pushing prices higher across the country, especially in the south of England.”

London saw the strongest quarterly growth in land value, with a 6.8% rise. Bailey added: “In London, especially central London, the market is buoyant with much improved sentiment across the board. The land market has been lifted by the spectacular turn around in the capital#s housing market.”

Source: Property Wire

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