With the start of the new year, Knight Frank, the leading expert in regional new homes, anticipates a challenging market landscape for 2024. Despite this, the demand for new homes remains robust, dependent upon the location and pricing.
The regional teams at Knight Frank have observed a customary trend of “flight to quality” during the more strenuous economic times in 2023. Properties falling within the pricing spectrum of £500k to £1m have experienced substantial demand, particularly in stronger locations. This trend has contributed to heightened activity throughout the year from both land acquisition and sales perspectives.
Buyer confidence, if a little delayed, has remarkably lifted the autumn market, hinting at a heightened appetite among buyers and sellers expected to carry into 2024. How long this will last will be dictated by the announcement of the General Election, but a stronger Spring market is anticipated if the election is not called during this time.
Mark Evans, Partner at Knight Frank and Head of Regional Residential Development said; “The sales of off-plan property have faced challenges during 2023 in the regions, and this trend is anticipated to persist into 2024. Overseas investment markets are increasingly exploring regional opportunities, especially in cities with renowned educational institutions. Second home owners are gravitating towards areas housing these educational hubs, presenting an investment opportunity.”
Evans further highlighted the shift among several residential developers towards student accommodation, where more certainty in funding partnerships is perceived. A discernible trend among high-quality developers is the strategic focus on prime city sites, as peripheral locations and secondary sites pose considerable challenges in terms of viability.
In advising clients for the year ahead, Knight Frank emphasizes the importance of realistic pricing and impeccable presentation of products. Buyers today exhibit a preference for turnkey solutions, seeking to move seamlessly into their new homes. Incentives hold considerable allure, especially given the current cost of living and mortgage expenses. Energy-efficient properties, which positively impact monthly outgoings, are increasingly attractive in this sector.
Residential Developments which highlight these factors include Spitfire Homes’ Malabar in Daventry, Northamptonshire, and Rosedale in Wolston, Warwickshire as well as HBD’s SETL development in Birmingham’s Jewellery Quarter all of which Knight Frank is delighted to be instructed on for the year ahead.