Buyers reject period properties to reduce housing costs - research

Homebuyers are snubbing period properties, new analysis suggests.

Research by Shawbrook suggests UK buyers are now prioritising sustainability and efficiency over style, meaning more and more are looking away from period properties when compared to ten years ago.

More than two-thirds (67%) of landlords agree that period properties are not as attractive to buyers when compared with 10 years ago, according to a survey by Shawbrook. Following the pandemic and current, turbulent economic conditions, buyers are changing their priorities as they look to mitigate the impact of rising costs and high energy bills.

In terms of developers’ views on residential properties, four-in-five (80%) believe that sustainable housing is becoming an increasing priority for buyers. 

Three quarters feel that new builds are increasing in popularity, and 77% also believe that location is still the most important driver of property sales. 

Another 72% feel that people are looking for a sense of community where they live, and 72% agree that people care less about living near their office when compared to the start of the pandemic, given the rise of hybrid working. Other aspects developers feel are influencing decisions:

A fifth of developers believe that multi-generational living will be the next big trend in residential property. This will most likely be a way of saving money and is backed up by the fact that 17% of buyers look for properties with a granny annex, Shawbrook said.

Another 21% also believe that eco housing will be a trend to fit in with buyers’ desire to live more sustainably, as well as cost-effectively.

Terry Woodley, managing director of development finance at Shawbrook, said: “It’s interesting to see how the current, challenging landscape is shaping new trends and changes in buyers’ requirements. Though they can be full of character and look attractive, many older, period properties possess lower EPC ratings and cost more to run and would require significant investment to make them more efficient and sustainable.

“It’s clear that developers are having to change tact to ensure their strategies cater for shifting demands, which will be a key component to ensuring their businesses are future-proof amidst rising costs and high interest rates. Having a flexible funding partner who understands the challenges and fluctuating demand will help developers shore up their plans.”