Prime time for off-plan buying is now
London needs more homes across the board. Whether you’re an investor looking to help supply greatly needed rental stock in the coming years, or you’re wondering how to start your own journey up the property ladder with the market’s current challenges, there’s an opportunity in the current market that’s not got near enough attention.
London needs more homes across the board. Whether you’re an investor looking to help supply greatly needed rental stock in the coming years, or you’re wondering how to start your own journey up the property ladder with the market’s current challenges, there’s an opportunity in the current market that’s not got near enough attention.
Do you have aspirations of homeownership?
Numerous renters aspire to become homeowners down the line. After all, who wouldn't desire to possess a property in London?
However, if your current rental situation is favourable or if the current mortgage landscape has placed you in a somewhat disadvantaged position – essentially if you have flexibility between committing to your purchase and its finalisation – it's wise to contemplate purchasing off-plan.
This is an opportune moment to do so, as it allows you to secure your price now and continue accumulating savings until the development is constructed in the upcoming years (during which the market conditions might enhance).
What makes new build homes a popular choice among many first-time buyers?
- Reduced energy costs
- Outstanding facilities
- Host of amenities
- Integrated appliances with a warranty
- On-site management staff
- Concierge and security
What is buying off-plan?
Buying off-plan involves acquiring a property that hasn't been constructed yet, directly from the builder. Even before the foundation is laid, developers are already engaging with potential buyers who seek to take advantage of cost savings and greater choices. These buyers turn to us as their starting point due to the following reasons:
- Our extensive network comprises leading London developers, ensuring buyers gain access to the latest, most innovative homes soon to grace the Capital.
- Early purchasers may benefit from attractive incentives.
- Buyers receive a brand-new home where every detail, from design to installation, is tailored for their exclusive use – a feature not found in period conversions.
- Collaborations with developers have previously offered incentives that enable prospective buyers to maintain the same purchasing power they held in a more favourable market, such as prior to a rise in interest rates.
Why consider this option now?
By purchasing off-plan, you secure a new home that will be ready in one to three years, depending on the development's timeline. This guarantees today's property price for London, giving you 12–36 months to organise your finances, set aside funds for stamp duty or increase your deposit.
Though predicting market trends is uncertain, history shows the potential for interest rates to decrease. This would particularly benefit off-plan buyers, who've already locked in a lower property cost. Additionally, there's a strong possibility of house prices rising in the future, enhancing the value of your new property.
London's property market has experienced substantial growth in the last two decades. Since 1999, average annual house price increases in London have reached 6.5%. Notably, this progress has persisted through challenges like the global financial crisis, the EU referendum, and the recent global pandemic.
Future Outlook
In alignment with governmental efforts for net zero carbon emissions, stringent targets for London's residential properties are being established. Both landlords and buyers can stay ahead of this trend by investing in new homes. In 2022, nearly 90% of new build apartments in London achieved the highest Energy Performance Certificate (EPC) ratings of 'A' and 'B', in contrast to the resale market where over 80% received 'C' or 'D' ratings.
Advantages of Buy-to-Let
For landlords seeking portfolio expansion, the present is an opportune time to act, and this recommendation extends beyond the aforementioned factors.
A significant national emphasis is directed toward addressing London's escalating need for new housing to keep pace with increasing demand. The current supply and demand equilibrium is at its most challenging, with projections indicating a further deterioration.
London's property market is renowned for its enduring resilience, as the allure of residing here remains constant. Developers and homebuilders find themselves under considerable pressure to cater to the impending surge in demand over the upcoming years. Consequently, it is an understatement to describe the anticipation for these homes as anything less than substantial.
Where to look?
Given the considerable number of London residents willing to relocate for their ideal home, regeneration endeavours hold immense promise. The primary advantage of acquiring an off-plan residence is the chance to engage early and invest in London's emerging neighbourhoods.
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If you have any questions, get in touch and speak to a knowledgeable member of the team.