Brexit for now has faded into selective amnesia for many, but the dip in property prices is rippling out from Central London to the suburbs and with it will come a cautious consumer sentiment.
So far the ‘Shires’ have been immune to such a ripple effect and this is why Go Develop are building over 1,000 homes across 27 sites with numerous partners and a £250m commitment for 2018.
It’s time for generation rent to shine and they need all the help they can get. The good news is that Brexit may actually help them get on the ladder slightly sooner as the pace of growth slows as a consequence of continued Brexit uncertainty.
So many are demotivated by statistics quoted such as research showing that many buyers may now have to save for the equivalent of 19 years in order to buy their first home (assuming no family assistance). In 2000, the same group would have been able to buy after saving for just 6 years and in 1990, when I bought my first home, in South West London, it was around 2 years.
Since 2000 the share of 20-39 year olds who rent privately has more than doubled from 20% to 50% and this rise will continue. Moreover, the average age of a first time buyer has risen to 30 and the average deposit an eye-watering £33,339, compared to £17,740 in 2007. At Go Develop, we see it as our duty to help support the next generation. First-time buyers play a crucial role in the housing market, and they impact further up the chain, we neglect them at our peril.
On the plus side, right now there is a huge transport and infrastructure revolution and with it a sea change of commute times that make previous non-commutable towns highly desirable and possible for ‘generation rent’. We have a number of fast commute developments of a high specification and that meet the style, facilities and space needs of first time buyers.
For example, we’ve recently completed on a fantastic joint venture scheme in Bedford for 49 apartments and in Luton replacing an existing nightclub with 59 residential apartments. Our experienced developer partners discovered our 100% full land and build funding in recent press coverage and got in touch through their brokers. We keep things simple and our partners have been amazed at how much of the admin, and red tape we take care of.
In his own words one of our joint venture funders has explained… “Working with Go Develop has been a fantastic experience. Not only have they provided tailor made funding but they have helped with risk analysis, due diligence, financial planning, marketing – the list goes on. In some ways this has been even more valuable, and we can take this knowledge on to our future projects.”
Beyond London, we have a commitment to provide accessible first time housing across the UK and are represented in most UK towns and cities. We offer a huge pipeline of exciting projects and where end prices start at under £100,000 for a one bedroom flat and stylish family housing is highly accessible at under £250,000 (this is not a misprint).
We are extremely proud of our exceptional joint venture business and at less than two years old, we have an exciting road map of changing the landscape of new build. We are supporting small and medium sized housebuilders, constrained by finance and up against unfair competition by the big boys, who some may argue have unfair political advantage with manipulated landbanks.
Go Develop is totally committed to SME housebuilders, with the ultimate aim of ensuring the next generation are able to own their own home and to provide future families with the security and long term capital appreciation of being a home owner and that many in middle age take for granted.