PROPERTY MARKET FORECAST
varied new builds with added character such as higher ceilings, bigger windows and low cost differentiators such as alcoves, mouldings and ceilings drops.
FIRST TIME BUYERS First-time buyers are reluctant to compromise on purchasing their first property as they witness second steppers stuck and unable to move on to their next home as their property hasn’t appreciated in value and they are left with very little equity. Instead they are having to wait much longer to save up a larger deposit or look to secure larger new build properties by taking advantage of incentives offered by developers. Generations of buyers will continue to delay purchasing homes as they view buying property as a longer term investment than previous generations have done. The move
cycle is becoming much longer due to the lack of available funding and we are beginning to see a trend of people moving only every 20 years or so.
SQUEEZE ON PRIVATE RENTED SECTOR
These factors will place greater pressure on the private rented sector as people opt to rent out the property they have a mortgage on and rent elsewhere instead of selling their home and moving up the property ladder. Younger generations are also tending to rent for longer periods before choosing to buy. If things stay as they are, home moves will continue to be supported by the bank of mum and dad and the buy-to-let market. To ease the pressure on the private rented sector, prices need to be addressed. More affordable rents will help to drive house
prices down. We are unlikely to see any inflationary pressure on prices in most areas; however any uptick in housing supply could potentially erode house prices. If interest rates did suddenly rise, home owners would struggle with the repayments, particularly in the face of increased costs of living. One of the biggest issues of 2013 will be how low paid workers in high value regions can continue to rent. We will continue to see more competition in the rented sector for landlords to attract better tenants. The standard of rental accommodation is likely to increase as landlords look to secure tenants for longer rental terms. Those interested in corporate lets or with secure employment tend to be much choosier when selecting a home for rent as they intend to stay in it
for much longer. ■
BritishBuilder.co.uk | British Builder & Developer | 11
“To ease the pressure on the private rented sector, prices need to be addressed...”
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