London land values fall most in five years as banks lend less

London

LAND values in central London's best districts fell 10.3 per cent in the year through September, the biggest fall in at least five years, as higher taxes and the Brexit vote cause luxury home prices to fall.

Banks are less willing to lend for site acquisitions and construction, fuelling the decline in values, broker Knight Frank LLP said in a report on Wednesday. Developers also need to raise their profit margins as a buffer against any further falls in home prices, the broker said.

"With the current level of political uncertainty, increased risk has been placed on house builders, causing them to look for greater margins," said Justin Gaze, joint head of residential development at Knight Frank. Outside of central London "demand for new homes is …