Savills’ quarterly analysis of the development market has indicated that confidence in the residential land market remains strong, but land supply will need to increase significantly to meet the government’s target to build 1.5 million homes over the next five years.

A report by Savills found that compared to the first quarter of this year, greater stability in the economy and housing market has supported the increase in confidence in the land market, despite a shrinking development pipeline.

However, despite the appetite for land among major housebuilders, partnership developers and privately funded developers, land sales in the first half of 2024 were 21% below the three-year average.