ABSTRACT
One of the critical determinants of the property market in London has been the cost of land. The analysis below is taken from London Development Research’s dataset of pipeline schemes in 2007/8 – that is before the impact of the slowdown in the property market. This showed average land cost was £19m a hectare. Values were highest in Westminster at £349m a hectare, followed by the City of London at £161m a hectare and Kensington and Chelsea at £82m a hectare. Although some of these values reflected the hope value arising from a site being allocated for housing in an adopted plan, or from planning consent being granted for a residential development, they also took into account the value of a site in its existing use or in potential alternative use. In London 98 per cent of residential development takes place on previously developed land, which therefore has a value other than as agricultural land or as protected open space.
