The price of residential land in the UK has increased a staggering eight-fold over the last 20 years

LA shortage of residential land combined with buoyant demand for new properties lies behind rising prices says the Halifax survey. Unsurprisingly, the most expensive land in the UK is in London and the South East and the cheapest in Wales and the North. However, of late prices have been rising faster in lagging areas, and the gap is closing. Residential land has proved an even better investment during the last 20 years than property - with house prices rising 306%. Long term, land supply shortages are likely to continue and as a result house prices continue to grow.

Region by region
The price of a hectare of London land - equivalent to two and a half acres - now stands at nearly £5.5m. In 1983, a hectare cost just £759,000, meaning land prices in the capital have risen by 624%.

Land prices in Wales have grown the fastest. In 1983, a hectare cost just £85,000. By the end of 2002, this had soared to £980,000 - a 1,053% increase. Across the UK , land prices have risen from £174,000 a hectare to nearly £1.6m - an increase of 808%.

(source: BBC News - 22/02/2003)