Welcome to the latest edition of the CrowdProperty Developer & Investor Index.
As we delve into the Autumn insights, we explore the shifts and trends that have shaped the property market over the past six months.
Developers: A Resilient Outlook Amidst Challenges
In spite of economic uncertainties, 67% of developers say they will maintain or even increase their project plans for the upcoming year, with 86% forecasting a busy 2025. However, a decrease in building intentions since the last quarter signals potential caution amidst an exit slowdown.
Investors: Navigating with Cautious Optimism
Investors, while experiencing a dip in activity potentially influenced by mortgage costs, demonstrate a cautiously optimistic outlook. A solid 67% plan to either maintain or expand their portfolios this year, and an impressive 90% have their sights set on portfolio expansion by 2025.
Encountering Hurdles: Planning and Site Acquisition
Developers continue to navigate through challenges in planning and site acquisition, with financing projects casting a looming shadow. A significant 30% have pinpointed planning policy as a primary concern this quarter, a notable increase from 13% previously.
House Prices: Anticipating a Downturn and Subsequent Recovery
Both developers and investors are bracing for a short-term dip in house prices, with a hopeful perspective on recovery over a three-year span. While the previous quarter brought a more positive outlook regarding house prices, recent data signals a more cautious stance, albeit not as pessimistic as Winter 2022.
Interest Rates and Economic Concerns: A Steady Gaze Forward
With expectations of interest rates stabilizing around 5% in the short to medium term, and the market pricing of government debt surging, national debt interest has hit a 20-year high this October, prompting a cautious outlook.
Policy and Economic Concerns: Navigating Through Uncertainty
Government policy continues to be a significant concern for both developers and investors. The spectre of recession is also emerging, with 11% of investors identifying it as their top concern, a discernible rise from 6% previously.
Eco-Conscious Developments: Aiming Higher
Developers are increasingly attentive to EPC ratings and ESG factors, with over 70% targeting a B rating or higher. While legislative changes are prompting improvements, grant funding and tax relief emerge as pivotal motivators for aiming even higher in EPC levels.
Your journey and insights through the multifaceted landscape of property development and investment are invaluable to us. Whether navigating through challenges or capitalizing on opportunities, your experiences and feedback are pivotal in our continuous exploration of the property market. Together, let’s continue to shape the future of property investment and development.
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