Sales of development land in London soared in Q2 of 2017

 
Sales of development land in London soared in Q2 of 2017 [Photo: Branislav via iStock]

The UK's property market is experiencing  something of a mixed year in 2017, with the political uncertainty fostered by both Brexit and a snap election which gave no definitive result meaning that people have had a more tentative approach. 

Sales figures have stalled somewhat, and the number of landlords expanding their portfolios, particularly in London, has fallen. However, while there are some areas of the market that have suffered amid the uncertainty, there are others where this has not been the case. 

According to a new study carried out by real estate advisors CBRE, investment in land for development, especially in the capital, has experienced a spike in the last few months. This will be good news for the government, which has placed housing, and the building of new homes, near the top of its priority list. 

CBRE said that in the second quarter of 2017, investors spent an impressive £722 million on development land in London. Not only did this mark the best three-month period since the vote to leave the European Union (EU) a year ago, it was also a massive rise on the quarter that came before. 

When compared to the January to March quarter, the April to June period marked a 48 per cent rise in development land by investors, which signals the intent to bring more properties to market over the next few years. 

The report states that the trend for growth is expected to continue throughout 2017, adding that overseas investors are increasingly seeing the capital as valuable once again. 

"Looking forward, we expect land sales across London to remain above average for the remainder of 2017. Overseas investors will continue to take advantage of current market conditions whilst also capitalising on the current exchange rate," it said. 

In terms of what is expected to be developed, CBRE expects to see a continuation of trends seen in the last few years, where mixed use residential and office spaces are becoming more common.