With the UK economy finally in the midst of a resurgence following months of lockdown measures, this is going to impact the property market. After an unstable and unpredictable 2020, there is a growing demand for both residential and commercial properties, as well as a shift toward land development.
Trends may also vary by area as a result of the difference in government investment between various regions. Foreign investors are also likely to have a huge effect on certain sectors of the property market too.
With so many emerging new trends shaping the property market in 2021, which trends are going to be definitive?
1. Regional differences emerging in housebuilding
One of the dominant trends will be a stark difference between the booms and busts in the property market dependent on region. There will be some pockets of the UK that are likely to pull ahead of others in terms of new development, a surge in demand for property and renewed enthusiasm for development.
In particular, the northwest and midlands have been forecast to really pull ahead of the rest of the UK, thanks to extra government investment in these areas. The government's intentions seem to have been to create more equilibrium across the UK property market, with the south and southeast having always outperformed other regions in the past.
In 2021, there is set to be a strong reversal in previous trends, with the midlands and north finally showing the strongest growth. This is likely to result in stasis or reduction in the cost of homes and commercial properties in southern areas and a boom in the north.
Alongside the north and midlands experiencing increased growth in existing properties, there may also be more housebuilding projects in these areas to meet increases in demand.
2. Larger commercial facilities
There is likely to be more commercial property development in 2021 to meet the increased demand for larger commercial premises. In a post-pandemic world, social distancing has become the buzzword on everyone's lips and everyone's minds when they visit retail stores or hospitality premises.
With all this in mind, many businesses will start to engage in the redevelopment of existing premises in order to make the space larger or start to commission the building of new properties in order to meet the demand from customers.
More sprawling retail development parks outside of cities are likely to replace smaller inner-city shops. For commercial developers, this will increase work and revenue, leading to a boom in this sector of the industry.
3. More property development for the buy-to-let market
Although predictions about house prices vary from one organisation to the next, there are several banks, such as Halifax, that are predicting an overall downturn.
This fall in house prices is projected to lead to an increase in buyers from the buy-to-let market. It is going to be particularly attractive to buyers from abroad, as they will be enticed by the prospect of seeing a sizeable return on their investment when prices start to boom again.
4. Transition from urban life to rural retreats
Coronavirus has had an impact on every part of life and its impact on the property sector is tangible. One of the clear indications following the pandemic is that it has encouraged a stark move from away city living to country life.
This renewed passion in the UK for country houses is likely to trigger increased land development and lead to more housebuilding in rural areas. Previously uniformly green belts will potentially become more dominated by new houses as families and older people retreat away from the cities, preferring the space and clean air offered by country living.
Land development in these areas is likely to be profitable for any current landowners that are eager to sell their undeveloped land to meet the increased demand for rural spaces on which to build. These lucrative endeavours could spark growth in the UK economy, which is good news after it was hit so hard by COVID-19 in 2020.
5. More sustainable property development
With global warming being a worldwide talking point in 2021, one of the main focuses of property development in both the commercial and residential sectors is likely to be increasing sustainability. Developers, architects and contractors are going to focus on reducing the carbon footprint of new builds.
There is also likely to be more demand for properties with modifications that reduce the carbon footprint of homes or businesses. Rental properties across all sectors are going to be able to reap a significantly higher premium when they have better sustainability credentials, compared to similar properties that are not eco-friendly.
If you have land that is suitable for development and you are looking to sell, contact us today for a free, no-obligation quote.