The continued political uncertainty in 2019 saw the property market continue to soften in many areas. Many developers and funders entered administration as a consequence of overexposure to changing market conditions with many over committed on too many schemes at a time and schemes with a falling demand.
We have witnessed many of the volume house builders going back to planning to vary their schemes, opting to change 4 & 5 bed properties for 2 and 3 beds. We believe the market for locally and socially affordable homes will thrive in 2020, with our focus mainly on getting permission for mixed schemes of affordable family homes on many of our sites.
With the general election now behind us, and a conservative majority enabling decisions to be made and bills to be passed, we see this as a positive for the housing and land market. There is still the uncertainty of what effect Brexit will have, however 2020 could certainly be a year of progress after 3 years of stagnation. It is increasingly likely that more levies and taxes will be brought in on land, so it important to structure deals that will account for this.
Britain’s population is ageing, and it is projected that by 2026 households of 65+ will represent almost half (48%) of all household growth (source: Department of Communities and Local Government). This represents an opportunity for developers to provide quality housing and care facilities to cater specifically to this demographic. Well connected, well serviced developments of bungalows, assisted living accommodation and single level housing will be in high demand.
Developments of affordable starter homes, family homes and suitable accommodation of over 65’s will go a long way to reviving communities.
2020 is a year for developers and landowners to come together to create and share value, producing developments that can make a real difference.