The value of homes in some low density suburban areas is lower than the plots they stand on, research by FPDSavills reveals.
The company says that in areas with low density housing types, such as 1930's bungalows or post-war semis, homeowners are being offered considerable sums by developers to buy the property for them to then demolish and then build high density housing on the land.
Homeowners themselves are also taking advantage of land values and plot sizes in order to build larger homes on the same plot, at a fraction of what it would cost to buy a property of the same size in the vicinity.
Simon Jones, director, says: ''An increasing number of clients add value to housing plots by adding additional living space or indeed demolishing their existing property in order to build a larger one.
“A number of lenders now offer mortgage products specifically designed for those clients looking to build a new home.''