Landowners 'face challenge to develop profitably'

Posted: 12 May 2010 11:12:53 GMT

Landowners in the UK are facing challenges to develop their land in order to make a profit, it has been suggested.

Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors, says: "In this environment, it is still quite a challenge to actually develop land profitably."

His comments come in response to new data from Knight Frank, which shows that residual land values in England rose by 11.5 per cent in the 12 months to the end of March.

This marked the strongest rate of growth since the first three months of 2005.

Mr Rubinsohn says the increase is indicative of what is going on in other asset classes, with non-cash options delivering "superior returns" for investors and savers alike.

Meanwhile, according to the Land Registry, house prices in the UK have risen by 7.5 per cent in the past year. The average property is now valued at £164,288.

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