Senior commentators from the UK's property sector respond to Halifax house price data showing a 2 per cent quarter-on-quarter increase.
Nathan Emerson, CEO of Propertymark, the country's professional body for estate and letting agents, commercial agents, auctioneers, valuers and inventory providers comprising 17,800 members, says:
“Spring tends to be one of the busiest times of the year for the housing market, and with inflation falling and interest rates remaining static, homebuyers have adjusted to the latest market conditions.
This should result in a surge of new buyers, sellers, and properties coming to the market as the year progresses.
This was reflected in Propertymark’s latest Housing Insight Report, which found that there has been an 18 per cent increase in the number of new properties coming to the market.
"However if inflation continues to drop to pre-pandemic levels, Propertymark is hopeful that interest rates will also start to fall, and the whirlwind of economic turbulence will finally settle for everyone once again.”
Daniel Austin, CEO and co-founder of independent property funder ASK Partners, says: “This data shows that the property sector is showing signs of recovery and the outlook has considerably improved.
Rent values have seen sustained growth, positioning real estate as reasonably valued in comparison to gilts and presenting growth potential.
In the realm of commercial real estate, factors like physical condition, location, and age significantly influence a property's value.
Well-maintained properties boasting modern amenities tend to command higher prices, while neglected ones may struggle to attract tenants or investors.
In the current market, the emphasis has shifted towards the importance of location and quality over the yield on debt or cost.
We anticipate opportunistic acquisitions of prime properties in prime locations.
“A RICS survey uncovered that non-traditional market segments, such as aged care facilities, student housing, data centres and life sciences real estate are yielding the most robust returns.
With housing set to be a battleground point in this year’s election and as the sector moves to the top of the agenda for all parties, we hope to see a long-term plan for new homes, including social housing, however, we expect we will see more short term fixes.
"Stimulus will be welcome but can create unnecessary froth.
For voters, a stamp duty holiday or reprieve may be a welcome sign.
For developers, eased planning regulations for brownfield sites and conversions will be popular.
However, the government will be faced with a challenge - striking a balance between trying to increase housing supply and therefore affordability by supporting developers and private landlords but appealing to voters who do not want to see greenfield development.
The planning system remains hotly political and as a result, landlords and developers are unlikely to see much in their favour.
“As a debt provider, we hope to support the best sites in prime locations with well-capitalised sponsors who understand their product.
Following this strategy, we aim to bolster developers' initiatives with the flexible underwriting approach that is necessary for navigating current planning rules and market uncertainty.
This will enable us to continue to offer opportunities for the growing number of private individuals opting to invest in property debt.”
