The cost of development land has plummeted by almost 60% since its 2004 high, research from Savills has revealed.
The property group said that land prices have fallen by an average 57.8% from their September 2004 peak.
Declines were steepest in northern towns and cities, where values have fallen by 65.8% since April 2004. Falls were the least pronounced for greenfield land in the West, where Savills recorded a drop of 50.5% since a peak in September 2007.
It warned that while the sharp falls represented a buying opportunity for vulture funds, it was unlikely that debt-laden house builders would be able to take advantage for the foreseeable future.