Savills Reports 'Cautious Optimism' in Development Land Market
Research from Savills indicates that planning policy changes and the Government's housebuilding commitment have revived activity in the East of England's development land market, although economic uncertainty has led some housebuilders to hold back on decisions.
The firm's latest quarterly survey describes the outlook as cautiously positive but warns that US trade tariffs, ongoing cost pressures and viability issues could limit land value growth, especially on brownfield sites.
In the East of England, greenfield values rose by an average of 0.1% in the first quarter of 2025 and by 0.8% over the year to March. Nationally, greenfield values dipped 0.1% in the quarter but were still up 1.3% annually. Urban site values in the region also rose 0.1% in the quarter but were down 0.3% year-on-year, while nationally they fell 0.1% in the quarter and 1.9% over the year.
Recent deals by Savills' regional offices include:
• A 4.5-acre site in Potters Bar, Hertfordshire, sold to Chase New Homes for 265 homes plus around 26,910 sq ft of office and retail space • An 18.8-acre site in Loddon, Norfolk, with permission for 180 homes, sold to Hopkins Homes • The former Cavalry Barracks in Butt Road, Colchester, with consent for 70 homes, agreed for sale to Newell Homes • A 5.3-acre site in Halstead allocated for 30 homes, acquired by Bellway
Tom Fraser, head of the Savills Cambridge office, says changes to the National Planning Policy Framework have encouraged landowners to bring sites forward, and the East of England appears slightly ahead of other areas. While tariffs have dented confidence and prompted some buyers to delay, prime sites still attract strong interest. He also notes growing appetite for strategic land, with many parties seeing this parliament as a chance to secure Grey Belt sites.
