Welcome to This Week in Property, your essential update on the latest UK construction and property news. This week, we explore the shifting dynamics of the housing market, from the stark contrasts between the UK’s cheapest and most expensive seaside locations to the growing preference among first-time buyers for urban living. We also highlight emerging investment opportunities in under-the-radar regions, track key policy changes affecting leaseholders and renters, and examine how the construction sector is responding to ongoing economic pressure.

Housing market trends: coastal areas, urban centers, and investment opportunities

Rightmoves analysis of the UK’s cheapest and most expensive seaside location reveals significant price disparities in coastal property markets. Interestingly, first-time buyers appear to be neglecting coastal regions in favor of urban centers, with Rightmove reporting a growing appeal for city living among potential first-time buyers.

Opportunities remain for investors in less prominent areas, with UK’s ‘low profile’ counties showing promising yield and rental growth. Manchester in particular is experiencing a rent surge that offers investment potential in its suburbs.

Policy changes and legislative updates

Significant policy developments include new leasehold reforms giving leaseholders stronger rights to challenge service charges, widely welcomed by the property industry. The House of Lords continues to debate the Renters’ Rights Bill, with peers emphasising that legislation must be ‘fit for purpose’.

Meanwhile, the issue of rental affordability gained attention as a single mother facing a 20% rent increase secured 56,000 signatures on a petition calling for rent controls.

Construction industry facing challenges as housing developments move forward

The UK construction sector continues to navigate difficult terrain with activity falling for the sixth consecutive month, according to The Construction Index. Despite this downturn, significant housing developments are moving forward, including the approval of Vistry and Wates’ 270-home Ashtead scheme and Progressive Living securing the green light for a £70m Stockport residential development.

In central London, planning authorities have launched an ambitious masterplan to create traffic-free public spaces in the West End, potentially transforming the urban landscape of one of the capital’s busiest districts.

Regulatory enforcement and industry standards

Regulatory actions included a Haringey landlord being fined £10,000 for running an unlicensed property in poor condition, and a construction firm facing penalties for ignoring fire safety regulations. Additionally, a building director was banned for abusing Covid loan schemes, underscoring the importance of regulatory compliance.

The industry also saw updates to standards with CIRIA refreshing its thrust restraints guidance and the Common Assessment Standard being updated to improve consistency across the sector.

Mixed signals in a changing market

As the UK construction and property sectors navigate economic headwinds, a complex picture emerges of challenges alongside opportunities. With prime property prices reportedly slumping as much as 22% below peak and a third of Central London homes standing vacant, concerns about market stability persist. However, developments in sustainable construction, housing initiatives, and regional investment opportunities suggest paths forward for industry resilience and growth.

Stay ahead of the curve by joining us at our upcoming property events. Connect with industry leaders, gain insights from expert speakers, and network with fellow developers, investors, and professionals. Whether you’re new to property or scaling your portfolio, our events are designed to keep you informed and inspired.