United Trust Bank’s most recent broker sentiment poll has revealed which sectors property finance brokers believe offer developers the most potential for growth over the next three years.
The survey of 130 brokers working in the property finance industry, asked them to select the three sectors they believed had the most potential for growth and the answers were combined to give the aggregate results. The First Time Buyer sector gained the most votes with Family and Retirement housing sharing joint second place. UTB also compared the results with a similar poll carried out in 2012.
Which residential development sectors offer the most potential for growth over the next three years?
|Ranking||Sectors offering developers most potential for growth – 2018|
|1st||First Time Buyer|
|=6th||One-off individual homes|
Although the First Time Buyer and Family sectors also topped the poll when UTB carried out a similar survey in 2012, ‘luxury’ homes and flats have dropped down the rankings whilst brokers see more potential for the retirement home sector now than they did in 2012.
|Ranking||Sectors offering developers most potential for growth – 2012|
|1st||First Time Buyer|
|3rd||One off individual homes|
Noel Meredith, Executive Director – United Trust Bank, commented:
“We shouldn’t be too surprised to see that according to brokers the First Time Buyer (FTB) and Family home sectors still offer the most potential for short term growth. There is an enduring demand for good quality, sensibly priced homes all over the country and both these sectors, but particularly the FTB sector, have also benefitted from the Help to Buy scheme which was introduced in 2013, after the original poll was carried out.
“What is interesting is how attitudes appear to have changed towards homes for older buyers. Housing isn’t the only industry or service which recognises that the UK has an ageing population. Just as the NHS must adapt and evolve, house builders are also seeing the opportunities to build homes for older, but increasingly affluent buyers who wish to live independently for as long as possible but nonetheless benefit from living in homes designed with their needs in mind.
“Interest in a greener way of living, which has continued to gain momentum over the last decade, also appears to offer developers an opportunity to build homes for what was once a niche market but is becoming increasingly mainstream. UTB has funded several such schemes meeting the most stringent of ecological targets.
“Whatever sector house builders are catering for, if they can show that they have knowledge of their market, understand their likely customers and have the experience to complete a quality development on time and on budget, specialist lenders like United Trust Bank will be pleased to consider supporting their projects.”