Managing Director for Allison Homes South West, Matt Bennett shares his reflections on the year so far and outlook on the property market for the region.
First half of 2023
The housing sector in the South West has remained robust so far this year; both in terms of selling and the building of our homes and the regional market in general. Whilst homeowners are now being more ‘patient’ in terms of their purchase and ensuring their move is exactly right for them, we have certainly retained a good sales rate.
From a build perspective, as expected, inflationary pressures on costs are being seen, not just across the sector, but the whole economy. However, the supply of materials has been steady, which has ensured we have continued our excellent quality of build with a good supply of labour.
Looking ahead
The outlook for the Devon and Somerset regions remains very positive. The area is an exceptionally desirable place to live, which isn’t surprising given the stunning coastal views, rolling hills and picturesque villages.
The basic requirements remain the same for anyone looking to move house; a quality home, built and designed well and offering effective energy efficiency.
Energy efficiency has become a key factor in the home-buying process. The Home Builders Federation’s (HBF) Watt a Save report evidences that new homes save residents an average of £2,000 in energy bills, compared to older properties. This makes a new home the perfect choice for anyone looking to control costs.
These factors are core to our own values at Allison Homes. We continually strive for excellence for our homeowners, and so our houses will remain attractive for people looking to move.
Interest rates and buyer confidence
The recent hike in interest rates has made people more aware of their affordability before moving, but again this highlights the need for energy-efficient properties for everyone. Affordability is not just about being able to buy and move – it's about the long-term living costs which we are all very mindful of.
We have seen the mortgage market return, offering a significant number of new products. Fundamentally, the cost of mortgages remains generally competitive and often even better than rental costs around the region.