House-building development land values in England rose at their strongest rate since 2005, for the year ending March 2010.
The new figures from Knight Frank's Residential Development Land Index shows that average residential land prices in England rose by 11.5% over the 12-month period.
The highest-performing regions were central London, where values for prime sites were up by 14.8%; the South West, up by 15.4%; and the South East, up by 13.6%.
Liam Bailey, head of residential research at KF, said that land values were rising on the back of improved demand, which was up by 15% in 2010 against an 8% growth in supply.
“The housebuilders are in acquisition mode, looking very hard at greenfield locations, where they are finding a wider range of attractive sites than six months ago,” said Bailey.
“Urban locations are still not being targeted outside London. Where they are, it is as much by the registered social landlords, which are still a force in these markets, as by housebuilders.”