Jason Tebb, Chief Operating Officer of Go Develop comments on the HM Land Registry House Price Index (November 2018 data):
“Data this morning from the Land Registry suggests that house price growth remained in positive territory from an annualised perspective last in November, albeit that the average price dropped slightly month on month. This reflects what we’ve seen for most of the previous twelve months, which is that strong buyer demand from many parts of the UK has, to a large extent, offset the ‘drag’ effect of lower activity levels and values in the Capital and South East.
At the end of the day, Brexit or not, we’ve seen compelling buyer demand across most of our developments throughout the UK over the past twelve months, with many people not seeing the current political uncertainty as a key blocker to their move. The aspiration to own is still very much there for first time buyers, and certainly in many cases, those who want to start or already have a family can’t put their needs for more room on hold, neither can those who other circumstances, such as a change of job or relationship status, dictate that their need to move. A competitive consumer borrowing market with a significant number of mainstream lenders offering low deposit mortgages has provided further market support of late.
We would suggest that the challenge in areas such as the Midlands, Wales and North West lies mainly with the need to build more homes, both to keep up with the natural spread of existing conurbations based on population increase and buyer appetite, but also to meet Government house building targets, whilst mitigating the usual challenges of funding and planning, particularly for smaller home builders who make a valuable contribution to new build stock, together with their volume counterparts. Therefore, Go Develop have allocated £100,000,000 for deployment in 2019, and remain committed to supporting both new and existing JV partners over the next twelve months, regardless of the macro political landscape.”