According to the latest June 2022 year-on-year (YoY) property market data from Halifax, the average UK property rose in price by 13%, to a record £294,845 for a typical property, defying any expectations of a slowdown. In June alone, compared to May, property prices increased by 1.8% which is the most significant monthly rise since early 2007.
Demand outstripping supply
The UK housing market has seen extraordinary growth during and following the pandemic, driven largely by a shortage of properties, particularly in the prime and super-prime markets. A major trend has been the ‘race for space’ which, post-Covid, sent buyers out of London and the big city markets in search of a peaceful, slower and more balanced quality of life. This is expected to continue with work-from-home policies still in place for many and hybrid work patterns will continue to offer greater flexibility to commuters. Furthermore, the UK Government aims to deliver 300,000 new homes per year by the mid-2020s however current supply is well below this figure.
Ben Coleman, Development Director at LEOS International, stated: “The UK’s chronic housing shortage is one of the biggest challenges the country faces. There is not one single national housing crisis. In many parts of the country, housing is relatively affordable, and supply keeps up with the demand for new homes. The UK has many localised housing crises focused on the most economically successful locations which provide the best employment opportunities. These housing crises are caused by how the planning system disconnects the local supply of housing from local demand.”
Growth set to slow but not stall
International property developer Leos is confident that the UK housing market will remain resilient and will continue to gather pace, despite rumours amongst the industry of a potential crash. Interest and mortgage rates rises will certainly bite at house prices and demand however, restricted housing supply and the unequal effects of the cost of living crisis will keep a floor on prices.
When developing both land and properties Leos International looks for the availability of both greenfield and brownfield developments to create the best impact and achieve results for all stakeholders when planning the property design, ownership models, and residential schemes to support modern and sustainable living.
“The current market conditions provide an excellent opportunity to build upon sustained growth and to further excel the Leos aggressive acquisition and housing delivery programme,” added Coleman. “We are proud that Leos International is building on its successes to date by furthering UK regional and international expansion having recently established a presence in the United Arab Emirates (UAE.) Our intention is to continue to deliver high-quality residential developments to the benefit of local communities.”
For more information about the Leos International portfolio please visit www.leosuk.com.