Sarah attended 'Residential Property 2011' at the Movers & Shakers breakfast with an excellent panel of speakers.
The effusive Tony Pidgley, Chairman of Berkeley Homes stated 'that the main challenges facing the housing market is mortgages and access to lending'. Mark Clare, Chief Executive of Barratt Developments agreed with Tony saying 'that it's all about mortgages, the new build industry cannot respond particularly swiftly, however although he forecasts a thaw in the financial markets over the next twelve months, without lending from the banks small housebuilders cannot borrow and this affects supply'.
On a more positive note, Stuart Baseley of Home Builders Federation sensed a 'softening' of attitudes from lenders with more willingness to engage. The newly launched "First Buy" initiative showed a real change of attitude from government with a £250 million fund.
Some concerns were expressed about the challenges facing affordable/social housing and the volume of government targets which were represented in social housing which are only 12,500 in 2011 growing to 16,000 in 2012 of the targeted 70,000. All speakers felt that keeping this moving forward will be extremely challenging.
There was some heavy debate over the Office for National Statistics Construction figures and all believed that these were incorrect. Mark argued that investment in residential property would be more profitable in the North of England as we come out of recession - so he advises 'invest in the North' - London is good for returns but not highly profitable.
