Developers have been acquiring more sites, encouraged by improving new home sales rates, reduced build cost inflation, and more stability in the broader housing market.

The recent report from Savills highlighted an improving mood in the residential land development sector.

A net balance of 73% of its agents reported ‘positive market sentiment’ in the first quarter of this year, up from 21% during the previous three months.

The agent has observed a marked increase in the number of new sites launching onto the market, in bids per site, and in the number of land deals being struck, indicating a growing interest in the land market after a period of dormancy in 2023.

Land prices have stayed largely flat so far this year, but they remain well down on a year ago, which should encourage new development.

According to Savills, greenfield land values in the UK in March stood 4.8% lower than a year earlier, and urban land values were down by 6.5%.

The agent’s report also highlights the types of sites in strongest demand and where future construction work is most likely to materialise.

Housing sites in prime locations with planning permission provide guaranteed scale where housebuilders can be certain of delivering schemes that sell well and hold their values.

So-called ‘oven-ready’ sites in secondary towns and villages where buyers can easily commute to cities also remain in high demand.

But developers’ appetite for flat-led urban schemes remains subdued. The new requirement for an additional staircase for residential buildings over 18 m tall (six storeys) has threatened the viability of many schemes.