Mario Carrozzo is the Caridon Group’s founder and CEO, heading a leading developer in the UK that operates with a special focus on providing social housing for vulnerable tenants and young people. This article will provide an overview of some of the hottest property development trends in 2023.
Energy Efficient Properties
According to a recent Knight Frank survey, 86% of respondents regarded energy efficiency as either ‘important’ or ‘very important’. Research from Savill reinforces this finding, with 71% of poll participants agreeing that a property’s EPC rating played a crucial part in their decision-making process.
City Centre Apartments
The COVID-19 pandemic had a significant impact on property buyer expectations, wants and needs, triggering a ‘Race for Space’ in 2020 as property purchasers left UK cities in their droves, seeking homes with more green space. As UK homeowners adjust to a new, post-COVID-19 world, city and town centres have reopened, renewing interest from buyers seeking quick and easy access to the workplace, as well as amenities like bars, restaurants, cinemas, theatres and museums. Experts suggest a resurgence in city centre living throughout 2023 as homebuyer priorities evolve once again.
Rental Price Increases
A Royal Institute of Chartered Surveyors report published in 2018 predicted that rental prices would rise by 15% by the middle of 2023. With more than 142% more people seeking rental properties in 2022 compared with pre-pandemic figures, it seems clear that demand for rental properties continues to outstrip supply, a situation that experts predict is unlikely to abate any time soon. In addition, with some prospective buyers waiting for mortgage rates to drop, demand could potentially increase even more as many move into temporary accommodation in the private rental sector, in turn pushing rental prices up even further.
Increased Energy Efficiency
As landlords seek to get ahead of regulatory requirements and capitalise on demand for green homes, energy efficiency is a growing priority among landlords and tenants alike. There are significant advantages for landlords and investors capable of adapting and capitalising on the race to ‘go green’.
Increased Demand for New Builds
A prominent property trend seen in early 2023 was a marked interest in homebuyers purchasing new build properties rather than older, period homes. Data from Savills suggests that regional reservations for new builds has continued on this upward trajectory.
Although considerable challenges remain in the property markets in 2023, opportunities still exist for investors and landlords capable of adapting, enabling them to contribute to the health of the UK property market, albeit after a brief cooling off period.