What the future holds for the property market

Words by Andrew Stoddart - Vida Architecture Words by Andrew Stoddart - Vida Architecture

If you have land or are thinking of buying land to develop the time is now explains Andrew Stoddart of Vida Architecture.

Andrew Stoddart

Andrew Stoddart

We all remember the sharp property rise in the early 2000s and then the dramatic fall that the crash brought sending developers into a crisis and land left waiting for the builders to come in, but what does the future hold for these undeveloped plots of land?

During the crash the first time buyers were left with a mountain to climb before they could even think about putting a deposit down on a small property. This cause the market to grind to a halt preventing movement further up the line and causing developers to stop building for fear of being left with empty houses and big bills.

According to Rightmove this is the year of the First Time Buyer, their site has seen a large increase in visits as property seems to be on the minds of everyone. The increase in government incentives such as Help To Buy and higher buy-to-let taxes seems to have given the new buyers the opportunity to get on the property ladder causing a movement further up the chain.  This means that undeveloped land is now perfect to get those builders in to help with demand.

Property is selling for more and selling quicker than 12 months ago and the demand for 2 bedroom property is at a high. The new buyers have saved up their pennies and with the governments help can now afford to take that step and own their own home. I’m sure you will have noticed that the builders have moved in and there is certainly more development projects finally getting off the ground.

Between January and February this year there has been a significant rise in property prices up 2.9% so could this be a sign of things to come? According to Nationwide there has been an increase of 4% from February to March up 9.5% from March 2013 and the fifteenth consecutive monthly rise, all pointing to a continuation of a more stable market. The problem with this rise is that demand is now far outweighing supply with new housing being 40% below the level of building pre-crisis (information taken from Nationwide).

Taking all the information into account it is my prediction that this increase will continue and housing will again become in critical demand. I would advise that if you have land or are thinking of buying land to develop the time is now. It’s time to start those projects and build the required housing that the UK needs, make the most of the land you have and a good design will give the new buyers exactly what they want and give you a great return on your investment. So whether you are redeveloping or starting from scratch you should be thinking of your next move and getting everything in place for the increase that is set to continue.

Andrew Stoddart is the Managing Director at Vida Architecture. For more information please visit www.vida-architecture.com