A renewed sense of optimism: Chris Baguley shares his insights on our latest residential property market report.

As part of the extensive research for our latest residential property market report, we caught up with Chris Baguley, Group Channel Development Director at Together, to discuss some of the opportunities and challenges he expects to see in the next 12 months and beyond.

"Is this the road to residential revival?

With the first shoots of economic recovery in sight, it’s exciting to see a renewed sense of optimism in the residential property market. The easing of interest rates and stabilising of inflation has brought a sense a relief to many people (and put cash back in their pockets). After a challenging and turbulent two to three-year period, new opportunities for both owner occupiers and investors appear to be opening up for those looking to acquire residential property.

This doesn’t mean that we’re out of the woods just yet, and we are likely to see a number of challenges in the latter half of 2024, into 2025, and possibly beyond. But for now stability in the market is a welcome relief.

Amongst the challenges…

We’ll continue to see residential property prices remain strong as demand for housing far outstrips the current supply. These factors will deprive a large proportion of the population the opportunity of home ownership, which in turn will place increased pressure on affordable and social housing.

The plans outlined by the new Labour government to build 1.5 million to 1.85 million new homes in their first term are a welcome boost to purchasers and house builders alike. However, the UK is already an estimated 2.5 million homes short of its targets meaning that until additional supply is a reality, competition and pricing will remain high for the foreseeable future.

If we’re to boost the UK’s housing stock, tackling the many issues surrounding the planning system is essential. It’s clear that, at a local level, many of the planning processes in place are highly inefficient and decision making needs to be simplified and delivered within far shorter timescales. Doing so will also make it much easier for developers to regenerate, renovate and reimagine abandoned land and buildings in the heart of our towns and cities, providing much needed housing and facilities in the communities that require urgent assistance.

Brownfield and greyfield sites are ripe with opportunities and can help us limit the amount of green belt development needed to meet housing targets.

One thing which is apparent from this latest report…

The specialist lending sector will increasingly support borrowers with flexible finance options, as more people find themselves outside of what constitutes a standard high street lender. Affluent individuals with complex income streams are starting to welcome the simplicity and speed that specialist finance can provide; no longer viewing specialist lenders as a last resort but as a smart move to enable them to seize opportunities.

With a wide range of flexible products, specialist lenders will continue to be an effective solution for the growing part of the UK lending market. It is supporting more of these types of borrowers, who don’t fit in to the more standard criteria favoured by the mainstream banks and traditional lenders.

2024 has been particularly special for Together. We celebrated our 50th year.

We’ve been part of the residential mortgage landscape since 1974 and we’ve seen our fair share of both economic boom and gloom. We’ve opened doors for home buyers, landlords and investors throughout, using a common-sense approach that can adapt to meet market needs, and look forward to doing the same for the next 50 years.

This report takes an in-depth look at the road ahead for both the residential property market and specialist lending in the sector. The journey to where we are now has seen its fair share of challenges, but the path ahead looks to be paved with opportunities for those ready to take the advantage.”

Joining Chris in our report, a host of residential property experts and experienced finance professionals provide their outlooks and opinions on several key sectors of the market. Find out what they have to say…