Tim Foreman, Managing Director of Land and New Homes, Leaders Romans Group (LRG):

New homes – we need more in ‘24

2023 was a year which saw the 'need to moves' active in the housing market while the 'want to moves' awaited an improvement in the cost of living, mortgage rates and greater market stability before seriously considering taking the plunge.

Consequently, sales – and specifically off-plan sales – took a dip, the length of time taken to transact was elongated, and supply was reduced further.

But I believe that 2024 will mark an end to what some are suggesting is a downwards spiral. For one thing, while we don’t have enough houses for the population, demand will be maintained in the medium to long term. Furthermore, inflation is down, interest rates have stabilised and the cost of living crisis is out of the headlines (whether it is over is another matter, but it seems that we are finally free of the self-perpetuating doom which has been a feature of much of 2023).

All of this points to a more positive 2024.

Solutions needed

Despite much political rhetoric about the need to build more homes, politics remains the greatest challenge: specifically the short-termist, reactionary prioritisation of the NIMBY vote over helping the homeless.

We need political determination to bring about the necessary release of Green Belt land and allow the hundreds of local plans that are stuck in the system to progress. We need a solution to the nutrient neutrality which is stalling approximately 150,000 homes (and 45,000 social / affordable homes).

Will we get the solutions needed next year? As we approach a general election the Conservatives will be unlikely to do anything too radical to upset their core voters. On the other hand, they have appeared committed to pushing through key legislation – specifically the Renters Reform Bill and Levelling Up and Regeneration Act - and have embarked on the Leasehold and Freehold Bill.

Even in the absence of further changes, these three substantial pieces of legislation alone will ensure an eventful year for the property industry.