UK land values remained flat in Q3 2025, reflecting a market grappling with viability concerns, planning delays and subdued buyer demand, according to Knight Frank’s latest Residential Development Land Index.
Both greenfield and urban brownfield land values saw no movement in the quarter, meaning annual declines held steady at 5%.
Prime Central London land values fell further between Q2 and Q3, with an annual decline of 3.5% – down from 2.5% in the previous quarter.
Knight Frank’s quarterly survey of 60 SME and volume housebuilders and developers found that 45% of respondents expect land values to fall further in the future.
James Barton, department head – London land agency at Knight Frank, said: “Land values held steady across both greenfield and urban brownfield sites in Q3, reflecting a cautious but stable market sentiment among housebuilders and developers. Many are taking a wait-and-see approach ahead of the Budget and although the market continues to navigate viability challenges, planning delays and subdued buyer demand, there are signs that clarity on policy could help unlock momentum.”
Oliver Knight, head of residential development research at Knight Frank, added: “The fact that nearly half of developers expect land values to fall further highlights the cautious tone of the market, but also reflects a measured and strategic approach to current challenges. Developers are navigating viability pressures, planning complexity and softer buyer demand, but with clearer signals on policy and economic direction expected soon, there’s potential for renewed confidence and a pickup in decision-making.”
