With sustainability and efficiency being prioritised over style, increasing numbers of homebuyers are looking away from period properties when compared to 10 years ago, according to new research.
67% of landlords agree that period properties are not as attractive to buyers when compared to 10 years ago, according to recent research from Shawbrook. Following the pandemic and current, turbulent economic conditions, buyers are changing their priorities as they look to mitigate the impact of rising costs and high energy bills, Shawbrook said.
In terms of developers’ views on residential properties, 80% believe that sustainable housing is becoming an increasing priority for buyers. 77% feel that new builds are increasing in popularity, and 77% also believe that location is still the most important driver of property sales. 72% feel that people are looking for a sense of community where they live, and 72% agree that people care less about living near their office when compared to the start of the pandemic, given the rise of hybrid working.
Other aspects developers feel are influencing decisions:
- 67% agree that period properties are no longer as attractive as 10 years ago
- 63% agree that there is no such thing as a ‘starter home’ anymore
- 63% agree that buyers don’t care whether their property is built on greenfield or brownfield sites
21% of developers believe that multi-generational living will be the next big trend in residential property. Shawbrook says this will most likely be a way of saving money and is backed up by the fact that 17% of buyers look for properties with a granny annex. 21% also believe that eco housing will be a trend to fit in with buyers’ desire to live more sustainably, as well as cost-effectively.
Terry Woodley, managing director of development finance at Shawbrook, said: “It’s interesting to see how the current, challenging landscape is shaping new trends and changes in buyers’ requirements. Though they can be full of character and look attractive, many older, period properties possess lower EPC ratings and cost more to run and would require significant investment to make them more efficient and sustainable.
“It’s clear that developers are having to change tact to ensure their strategies cater for shifting demands, which will be a key component to ensuring their businesses are future-proof amidst rising costs and high interest rates.
“Having a flexible funding partner who understands the challenges and fluctuating demand will help developers shore up their plans.”