Brexit uncertainty hasn’t stopped the number of new properties being listed for sale across the UK.
According to the latest property supply index figures, the number of new builds listed for sale has increased by 11% compared to the previous month.
“Seller activity picked up in February as we head towards the traditionally busy spring period. Brexit uncertainty is feeding through to some areas of the country.
Particularly in and around London, where transaction levels have dropped off compared to the same time last year, but that’s not the picture everywhere,” said Housesimple Chief Executive Officer, Sam Mitchell.
Although buyers remain cautious when it comes to buying a new property, especially in London, key areas continue to have a big rise in supply. Read more on the highest new builds since 2007.
“The impact on future market sentiment and outlook will vary depending on whether we get a deal or a no-deal Brexit, so it’s no surprise that savvy buyers are also looking to get deals done and lock in the best rates before the banks reconsider their mortgage offers,” Sam Mitchell added.
However, the rise of the first-time buyers looking to get onto the property ladder has seen asking prices decrease slightly by 0.3% in England in the last 12 months.
Data from the Home.co.uk index shows that London currently has one of the weakest markets, with asking prices in the capital falling by 6% since May 2016, down to £514,815. First-time buyers to rise in 2019.
Doug Shephard, Director at Home.co.uk points out that the property market will continue to stagnate in terms of buyers due to Brexit uncertainty because those with properties aren’t looking to move until the UK’s future with the EU is cleared up, but first-time buyers are taking their place.
“Whilst borrowing costs remain low and stable, buyer demand is likely to remain relatively stable. Hence, it is arguable that supply is perhaps the most important price driver in our current economic environment. Too much and prices slide, but too little and prices soar,” he explains.
There remains a viable market for property buyers, but it’s becoming increasingly important for property developers to thoroughly research the areas they’re purchasing land, who they’re building properties for and what type of asking price they’re after. Whose buying property where?
Government schemes and incentives such as Help to Buy have seen the number of first-time buyers in the UK reach its highest level in 12 years.
In 2018, mortgage providers processed over £62bn to first-time buyers last year, completing over 370,000 newcomer mortgages and achieving the highest level since 2006 according to latest data released by UK Finance. Read more.
“There are currently over 17,000 products available for first-time buyers and Defaqto recently reported a 46% increase in [availability of] 95% loan to value mortgages, which has helped fuel purchases,” said Rich Campo, managing director of Rose Capital Partners.
It’s becoming more common for developers to begin to focus on building properties that are tailored and are targeting younger couples who are looking to get onto the property market for the first time. What are the top 10 ‘must-have’ features to sell a property?
According to PropertyWire (www.propertywire.com) ‘over 25,000 houses were purchased by first-time buyers in January 2019.’ First-time buyers continue to grow within the property market, compensating for more experienced property owners who are binding their time with the Brexit outcome.
At Hunter Finance, we offer fast and easy development finance that can help cover building costs and contribute towards land purchasing. For more information on our development finance for property development, contact us on 01825749721 or get in touch here.