Death, debt and divorce drive UK land
Published 01/11/2011 | 05:00
The three Ds of death, debt and divorce account for 60-70pc of land sale in central England, Savills' winter review of land prices has found.
A fourth D, downsizing, due to retirement, was also identified as a significant player in the market.
Richard Binning, of Savills Oxford, said that debt continued to be a major factor in land sales and confirmed that banks were increasingly scrutinising their clients' ability to service debts, resulting in more debt-related sales, even in cases where the capital is secure.
Like their counterparts in Ireland, English farmers are back in the land market.
Profiling the most active customers in the market, Mr Binning said that neighbouring farmers were once again important players at sales.
"Farmers with cash from development sales particularly want commercial-scale properties," he said.
"Investors and corporate funds, including Oxbridge Colleges and pension funds, are keen on long-term investment vehicles: sizeable parcels of land, preferably with a built-in uplift in value, such as an expiring tenancy or development potential."
While the supply of land on the market was slightly down to the end of July, Savills did not see a fall-off in the number of buyers.