Knight Frank estate agency has noticed a trend. Despite tough economic times in 2023, buyers are still keen on new properties priced between £500,000 and £1m, especially in desirable locations. This “flight to quality” means that despite the challenges, there’s a significant demand for well-located, well-priced properties.
Interestingly, buyer confidence picked up notably in the autumn, suggesting that people are still eager to buy and sell homes. This enthusiasm is expected to continue into 2024, barring any major political events like a general election.
Off-Plan Property Sales and Overseas Investment
Mark Evans, a Knight Frank partner, pointed out some specifics. Sales of off-plan properties (homes bought before they’re built) faced hurdles in 2023. This trend might continue into 2024. However, there’s a silver lining: overseas investors are showing increased interest in regions, particularly cities known for their educational institutions.
Some developers are shifting gears towards student accommodation, lured by more certain funding opportunities. High-quality developers are zeroing in on prime city locations, as the outskirts and less desirable areas present more challenges.
The Strategy for Success
Knight Frank advises that realistic pricing and top-notch presentation are key to attracting buyers. People nowadays prefer homes that are move-in ready, with all the amenities set up. Additionally, with living costs and mortgages biting into budgets, energy-efficient homes are becoming more attractive.
Taylor Wimpey’s Cautious Outlook
Taylor Wimpey, a major housebuilder, echoes a cautious sentiment. While there are signs that the housing market slowdown is easing, the company remains reserved about its profit forecasts and building targets for the year.
Jennie Daly, CEO of Taylor Wimpey, notes that while mortgage rates are decreasing, the market still holds uncertainty, especially with the challenging planning landscape.
What Does This Mean for You?
Whether you’re a potential homebuyer, an investor, or just keeping an eye on the market, these insights offer a fascinating glimpse into the current state of the UK housing market. Despite economic challenges, there’s a strong demand for quality homes in prime locations. Developers and sellers need to focus on realistic pricing and offering turnkey solutions to attract buyers.