AS LONDON PROPERTY RECOVERS FROM ITS CHILL, THE SOUTH-EAST OF ENGLAND LOOKS HOT FOR THE FORESEEABLE

It would appear that the London residential property market has returned from its summer holidays, despite previous threats to lose its attraction for the rest of 2015 and potentially beyond.

However, the volatility in the London property market has not gone unnoticed and many potential home buyers are still continuing to look further afield and consequently flocking to locations where they believe they are getting better value for money, such as the South-East of England.

There are other flaws in the London property market at the moment that could arguably be contributing to staggering price growth and excellent prospects in London suburbs and the surrounding commutable areas. In fact, The Office of National Statistics in their latest report stated that price pressure is currently the highest in the East of England and the annual pace of house price growth is running at 8.3% in that region, but the question is; why is property in the South-East of England looking hot for the future?

Some experts have suggested that as London’s property prices reached record highs in the very early part of 2015, that despite wage rises, greater spending power, help-to-buy schemes and the change in stamp duty land tax, the price of property there has in fact out-done the average buyer’s affordability.

In addition, it is widely touted by (once frequent) London property seekers and first-time buyers that a lack of new builds in the Capital is forcing them to look in other parts of the country where they are able to find new build homes at much more affordable prices, whilst still being able to commute to the Capital. These factors are contributing to property price increases in these areas, due to an exceptionally high demand and a limited supply of suitable housing. 

Furthermore, we know that basic supply and demand evidently dominates the trends in residential property prices and it is “universally acknowledged” that in the UK generally, there is a huge shortage of affordable dwellings to house our residents.

Developers cannot physically build modestly priced homes quickly enough to keep up with a rising population and high demand, which in turn expectantly pushes prices upwards nationally and evidently so in the South-East of England.

Although prices in London are showing signs of a rebound again, hitting an all-time high in September, jumping to 2.2% according to Rightmove’s latest House Price Index, (partly down to what they suggest is a “supply/demand imbalance”, along with “London’s international allure), some experts argue that it is in fact, the luxury housing sector only that is keeping the market afloat there.

It seems that developers in London haven’t turned a blind-eye either and are evidently pitching their build projects at the more luxury end of the market, identifying a buyer affordability issue at the lower end of the scale.

REGAL GREEN HOMES LTD, an active residential developer in the South-East of England has identified a unique opportunity in the marketplace and is taking advantage in the surge of buyers looking at the area as a genuine alternative, recognising significant growth factors for regions surrounding Kent.

The chronic shortage of houses in the region has presented the company with a unique opportunity to expand by building sustainable and affordable houses, whilst at the same time, meeting the desires of those looking to own their own home.

Regal Green identifies sites with existing planning consent, principally for modestly-priced, new flats and houses, manages the construction phase and offers the completed properties for sale to owner-occupiers on the open market.

They target sites of a modest size (generally with a gross development value in the range of £1.5 to £5m), which they consider will limit competition by being too large for many private developers, while being too small for larger national house-builders.

THE REGAL GREEN HOMES BOND
Regal Green Homes has identified a flexible alternative to traditional bank lending and has released their latest mini-bond, providing the opportunity for qualifying investors to receive an attractive yearly return.

To find out more about the mini-bond, download our guide or request an INFORMATION MEMORANDUM by emailing info@regalbond.com or calling +44 (0)1623 840909.
Visit www.regalbond.com to read more about us.