UK Property: Brownfield Land Values Rise


The value of land on brownfield sites – that previously used for industrial or commercial purposes – has bucked the trend of falling land prices in the UK by growing 2.1 per cent in the fourth quarter of 2016.

According to Knight Frank’s Residential Development Land Index strong growth was seen in Birmingham. The urban brownfield land market bucked the wider land trend, showing 18% growth over the last two years.

The urban index encompasses sites across five major cities. It is noticeable that pricing in Birmingham has been strongest over the most recent quarter. This highlights how, even with wider economic uncertainties, the prospect of regeneration, potential transport uplifts, and a positive local economic picture, can underpin land pricing.

The UK housing market remains characterised by a shortage of homes in many areas where demand is greatest, and by record-low mortgage rates. However, the movement in land prices also reflects the wider economic environment, especially the uncertainty in the medium-term over the impact of Brexit on the UK economy.

Ian Marris, joint head of Residential Development, said:

“The market for land in PCL [Prime Central London] is showing signs of conditions last seen in 2010 where, after two years of falls, the savvy investors returned to the market and bought in expectation that pricing was reaching the bottom. It is probably a little premature to make the same conclusion however it feels like it is close and we can certainly see value returning to development appraisals.”

Meanwhile, MoveHub, the UK’s leading international relocations resource, has conducted new research to find out which country is best for first-time buyers based on factors such as income and property price growth.

The report cross-references data on the average change in property prices with average salary increases for over 33 countries in 2016 to determine which nation is easiest for people to take their first step onto the property ladder.

Overall, the report revealed that countries with the biggest property price hikes had unfortunately also seen the slowest growth in annual incomes, with some salaries in decline, whilst house prices rose. On the other hand, countries with the highest salary growth enjoyed more affordable property prices or even prices in decline, making them the best places for first time buyers.

UAE took the top spot where average real wages enjoyed a boost in 2016, while at the same time the nation’s property market experienced a slump in value of -7.96%. The recent sharp decline in home prices in some of the country’s hotspot cities suggests that the affordability gap is closing considerably quicker in comparison to other international regions.

Expat haven Singapore also placed among the top five countries for first time buyers, where salaries grew by a generous 3.7%, but home prices continued to drop by 3.37% following the government’s intervention to cool down soaring house prices.

Unsurprisingly, due to the stagnation of wages and unbridled growth of property price in recent years, the UK’s housing market is outgrowing its wage increase. In 2016 the cost of a house rose by an average of 5.7% with salaries only increasing by a modest 2.3%.

Harriet Cann, head researcher at MoveHub comments:

“In general our research shows house prices going up and wages stagnating. What is interesting is that where a government has intervened, like in Singapore, the gap has narrowed, meaning there are steps that can be taken to curb this disparity.”

CityGreens, Solihull, Birmingham

City-style apartments directly on Birmingham's largest park

  • Limited pre-launch prices.
  • ZERO ground rent
  • Excellent tenant demand

£182,000 - £419,000

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000


Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator


Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.


Not a member? Sign up for free

UK Property: Brownfield Land Values Rise

UK Property: Brownfield Land Values Rise


By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.