Mon, 22 Oct 07
The new homes market shows no signs of cooling in the South East...
Despite current reports of a slow down in the housing market, the new homes market is still highly active in the south east, according to the Knight Frank South East Residential Development team.
Paul Hogarth, Partner and head of new homes sales and marketing for Knight Frank in the south east, says:
We are continuing to see a high level of activity, with consumers attracted to the long term benefits of a new home such as low maintenance and energy efficiency, together with good design features.
Sales are active from a cross section of purchasers throughout our residential development division which covers Kent, Surrey, Sussex and Berkshire. Demand is still outstripping supply, particularly in popular commuter towns. Balmoral House, a scheme of apartments in Tunbridge Wells, sold at a rapid rate and we have recently sold out at Weavers Place, a scheme in Tenterden, Kent, which launched in the spring. Mosaic, a development of apartments in Slough, is also selling well to both investors and first time buyers.
Mr Hogarth continued: There is tremendous pent up demand for sites which haven’t yet launched, such as Ember Court, an apartment scheme in Thames Ditton which literally has hundreds of people awaiting price releases, keen to be the first in-line for these apartments.
Although interest rate rises have had a short term negative affect on rental yields, buy-to-let investors are still very active in the market, seeing bricks and mortar as a safe investment for long term capital gains, and with the introduction of a single capital gains tax of 18% in April 2008 as announced in the pre-budget report, owners of buy-to-let properties and second homes could save thousands of pounds when they come to sell.
Whilst there continues to be a supply shortage of new homes and a sustained demand, I believe it is unlikely that the market will significantly slow down.
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