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The most recent residential development land survey carried out by Savills shows that they have risen 1.5% over the past year. The improved values were fuelled by a 1% increase in the first quarter of 2007. At this point last year, the survey showed values had dropped 3.3%.

The report predicts that urban land values will rise 3% this year whereas greenfield land鈥檚 value will increase 8%.

The research coincides with housing market surveys that show that house price increases have levelled off.

A survey by Haarts indicates that average prices increased 0.1% in London last month, one of the few regions not to report falling prices in the Land Registry national market survey.