Self Build and Land Market Commentary January 2009
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In 2008, agricultural land prices continued to grow as interest in UK land grew from Irish and Danish farmers who wanted to expand their businesses. As food prices began to grow, so farming became more profitable. However as the credit crunch started to hit in the second half of the year, land prices began to dip. For more market commentary on Land visit VOA and Savills.
Self build has suffered the same fate. Lending to well planned self build projects shouldn't be a major issue while general house prices fall, as most self builds gain 30% in value when they are finished. However lenders have tightened their criteria and increased costs of self build mortgages. This coupled with those wanting to self build struggling to sell their current homes has sadly lead to a stagnation in the market place.
BuildStore, owners of Plotsearch, an on-line plot finding service for self builders commented "we have had a significant increase in the number of building opportunities and now have over 9,000 plots available. Prices are estimated to have fallen by 15% in 2008 versus 2007".
However 2009 should be one of the best years to self build. Land that can be built on (development land) is at its cheapest because self builders aren't competing so much with small to medium sized developers. Materials can be bought at rock bottom prices due to the fall in demand from developers who are expected to build less than a third of homes they have in previous years. High quality tradesmen and builders can be found at good prices as many have lost their business with developers who are expected to cut production of new homes from an average of 240,000 a year to around 80,000 in 2009.
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