"Demand remains lowest for both residential and commercial plots and with interest rates continuing to climb while market values stagnate, we expect this to remain the case throughout the remainder of the year"
Newly released research from Searchland, which analysed appetites for land plots across England based on the number of available opportunities within the market that have already been snapped up by developers, shows that industrial land plots are the only land type to have seen an increase in property development interest since the start of the year.
However, demand remains robust with 45% of all available land plots having already been sold subject to contract.
The East Midlands (+1%) and London (+0.4%) are the only regions to have seen positive movement when it comes to the quarterly change in developer demand across the board.
Land-only plots remain the most in-demand development plot with current demand at 46%, although the appetite for such opportunities has cooled by -2% since the start of the year. London is the only region to have seen a quarterly boost in land-only development demand.
Farmland also remains popular with current demand at 43%, although again, this is some -4% off the pace set during Q1. However, the North East (+23%), East of England (+17%), North West (+10%) and East Midlands (+7%) have all seen positive growth in demand for farm development opportunities.
Industrial development sites are not only the third most in-demand in Q2 at 38%, but they are also the only development type to have seen positive quarterly growth overall.
Demand for industrial development opportunities has crept up by 0.4% since the start of the year, with Yorkshire and the Humber driving this growth where all industrial development plots are currently sold subject to contract.
Demand for commercial and residential plots sits at 35% a piece, with both sectors seeing a respective reduction in demand of -1% and -4%.
Co-founder and CEO of Searchland, Mitchell Fasanya, commented: “Developer appetites remain highest for land-only plots as it allows them the freedom to realise their ambitions from the ground up, however, it’s clear that the wider economic picture is starting to dampen their enthusiasm with demand declining since the start of the year.
"In fact, industrial plots are the only land type to have seen a marginal uplift in this respect although there is a positive movement across almost every land type when breaking the market down on a regional level.
"Demand remains lowest for both residential and commercial plots and with interest rates continuing to climb while market values stagnate, we expect this to remain the case throughout the remainder of the year.”