House building hit by fall in value of land



House builders are likely to become more conservative and turn their backs on major regeneration schemes in response to the recession, according to research by Knight Frank. House builders and developers will look to smaller scale and lower density developments, particularly on greenfield sites. And with values dropping by as much as 70 per cent, many investors are holding on to land and waiting for values to rise, which will further reduce housing supply, the report argues.