2% increase in London land values

London: Prime residential land prices in London rose for the first time in nine months during the first quarter, even as urban values elsewhere in England continued to decline, Knight Frank LLP said.

Prices for the best sites in the capital increased 2% after buyers from the Middle East and Asia purchased more plots, Knight Frank said, without giving an average value. They may climb as much as 10% this year, according to Gráinne Gilmore, head of British residential research for the London- based real-estate broker.

She said: “Competition for the most desirable sites, especially from the Far Eastern and Middle Eastern purchasers, is expected to push up prices over the next 12 months.”

English land values are around 40% below their peak in 2007, Knight Frank said. That has encouraged homebuilders to increase holdings of discounted plots to improve profit margins.