As a progressive and innovative organisation which prides itself on maintaining a close relationship with its members, I feel it important to keep my knowledge on emerging trends and current policies up to date, so I can pass this back on to our members who need to make informed decisions for residents.

I attended a conference in Hertfordshire recently which comprised several interesting talks on the current market and insight as to where the current economic climate and price increases are going to take us. I set out below the summary of where we are now and what is predicted to change looking forward:

• Annual house price growth at the end of April was over 12% which prices have risen by nearly 24% since June 2020 (nationwide).
  
  
• There were over 110,000 housing transactions in March continuing at over 12% above the pre pandemic norm for the month, but secondhand stock levels were a third lower in March 2022 than they were in March 2019.
  
  
• The land market remains strong, increasing green field values by 9% and 7% for brownfield sites, despite an increase in material costs.
  
  
• But what is coming? We have already seen interest rate rises with further rate rises anticipated for this year.
  
  
• Price growth, pressure on household incomes and higher interest rates will have the greatest impact on first time buyers.  This has been exacerbated by Help to Buy coming to an end, despite initiatives such as First Homes and schemes such as Deposit Unlock.
  
  
• Increasing material costs are weakening housebuilders cashflows and potentially squeezing margins. We can expect slower house price growth over the next 5 years.
  
  
• Build cost and annual inflation has increased and the new part L building regulations are expected to increase costs further.
  
  
• Buyers will need higher deposits and income requirements which will start to impact on the market with rising living costs.  Buyers will start to think twice about moving home.
  
  
• There is a lack of clarity from the Government on planning policy as well as reduced support for new build sales.  With increasing requirements for developers this is leaving less certainty for future housing delivery.

Sarah Davey, Head of Development at CHIC

If you would like to find out more about CHIC’s Newbuild Service, please get in touch with Sarah Davey at sdavey@chicltd.co.uk who can help with all your new build projects, whether traditional construction solutions or modern methods of construction are needed.