Welcome to This Week in Property, your essential update on the latest UK construction and property news. The market is moving through a cautious but intriguing phase. While uncertainty hasn’t disappeared, early signs of recovery, shifting buyer behaviour, and renewed lender confidence are beginning to reshape sentiment across both residential and commercial sectors. From market performance to policy changes and live deal activity, here’s a snapshot of what’s influencing property right now.

Market trends and recovery signs

The property market continues to show mixed signals. According to RICS, UK commercial property is edging towards a recovery, offering some optimism for investors.

For residential properties, buyers are reportedly returning to the market this year, although December transactions were ‘disappointing’ as the market stays flat. Winkworth suggests the property market is looking positive for Spring, providing a glimmer of hope.

Mortgage affordability is on course for 2021 levels, and falling mortgage rates are sparking new hope for homebuyers, potentially stimulating demand. However, transaction times have hit 123 days due to lack of certainty, indicating ongoing friction in the property sales process.

Government initiatives and regulations

The government’s New Homes Accelerator is extending to small sites in its second phase and has reportedly unlocked 125,000 homes. However, there are concerns that government buying schemes are in high demand but low supply.

In regulatory news, the Decent Homes Standard has been delayed until 2035, as revealed by Pennycook, a move that has angered campaigners while giving landlords more time to prepare. Additionally, heat network regulation has come into force, impacting energy provision in properties.

The Housing Minister has explained why leasehold reform is taking so long, while the Conveyancing Task Force highlights commonhold risks in leasehold reforms, indicating the complexity of these changes.

Investment and development activity

Investment activity continues across various property sectors. MCR Property Group has bought a Canterbury student village, while Curation Capital has acquired a 393-bed Belfast PBSA development, showing continued interest in student accommodation.

Longstock and TIME Equities have snapped up a Glasgow office block for £10.65m, and LaSalle has signed pre-lets totalling 238,000 sq ft at a flagship City office scheme, demonstrating ongoing commercial property activity.

In the financing sphere, Atelier has surpassed £1bn of development funding across the residential sector, indicating strong backing for housing development. Meanwhile, Secure Trust Bank has lent £3.9m for a Surrey heritage scheme, and Assetz Capital has provided £6.25m for a Lancaster housing scheme.

Taken together, these updates paint a picture of a market that’s slowly recalibrating rather than standing still. Government interventions, regulatory delays, and steady investment flows are all playing their part, while affordability and confidence remain the key variables to watch. As we move further into the year, staying close to these signals will be crucial for anyone looking to make informed property decisions.

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