A look into our crystal ball, 2018, key trends to look out for

As the unpredictable, uncertain 2017 draws to a close, we have reflected on the year behind us and have taken a brief look at the key trends to look out for in 2018.

  1. Without doubt the housing sector will remain top of the government’s agenda in 2018, ahead of Brexit. With many considering supply shortages as the biggest threat to the UK economy, in our recent article entitled “Without the right foundations, 300,000 new homes will simply not get built” we consider the true changes needed to boost housing supply in 2018, including proper collaboration between the public and private sector and proper reform of the planning system. Could 2018 be the year that the government introduces significant changes to truly drive the housebuilding sector forward?
  2. Should economic growth exceed expectations in 2018, it is likely the Monetary Policy Committee will raise interest rates, with some predicting a double rate rise over the course of the year. Whilst the Royal Wedding in May is predicted to boost the UK economy, a rate rise will also greatly depend on whether inflation has now reached a peak. However, a 25 – 50 bps rate rise to historically low rates, is unlikely to have any significant consequences to the housing market in the short term. In the third quarter of the year, the Building Societies Association reported that 90% of new mortgages taken out with Building Societies were on a fixed rate. The real impact of rate rises and the time to truly be concerned is yet to come, when, in 2/3/5 years’ time these fixed rates expire, and homeowners find themselves on much higher variable rates or having to choose between other higher rate products.
  3. A year ago, we predicted a continued rise in the Build-to-Rent sector as stretched affordability in certain parts of the country would leave the desire for home-ownership as a distant dream for many, increasing demand for quality rented accommodation. Affordability issues have not disappeared and therefore this sector continues to grow, and we anticipate this to remain the case in 2018.
  4. The main tranche of the market where we expect further strong activity is that of the first-time buyers (FTBs). In 2017 FTB activity was significant; according to UK Finance, there was a 10.5% increase in the number of loans for house purchase to FTBs in October 2017 when compared to a year earlier. We expect this trend to continue boosted by the extension in Help-to-Buy and importantly, the scrapping of stamp duty for FTBs up to £300k on properties valued less than £500k. This should also encourage developers to build units below this threshold as this, in the right location, is where they should find a steady stream of demand.
  5. And lastly, whilst market growth will be muted in 2018, we do anticipate above-average growth in the North West, North East and Yorkshire and Humberside. Regions where affordability is most stretched, including London and the South East, are likely to underperform the rest of the country. However, even within this part of the country, there will continue to be some growth in some locations, such as in the up and coming London boroughs, those benefiting from the Elizabeth Line, and along the commuter belt where prices will remain under upward pressure because of supply shortages.

Maslow Capital Purpose Built Student Accommodation (PBSA) Portfolio Update

We are a leading provider of development finance for the construction of purpose-built student accommodation (PBSA). To date, we have supported a number of developers with both senior and stretch senior finance facilities and we have a tremendous appetite to grow our loan book by supporting experienced developers with their PBSA schemes.

Next week we’ll be at the Property Week Student Accommodation Conference, and encourage anyone interested or involved in the Purpose Built Student Accommodation (PBSA) industry to attend the event and chat with Sky Mapson our PBSA specialist originator and his team at our exhibition stand.

Sky Mapson can be contacted on:
Email: sky.mapson@maslowcapital.com
Mobile: 07500 874 468
Landline: 0207 016 1465

UK Proptech Conferences September 2017

Proptech, short for property technology refers to the numerous start-ups and new technologies popping up in a response to years of inefficient and old-fashioned processes in the real estate industry.

Proptech is the coming together of technology and real estate which is propelling the industry forward. This is why we have listed some of the best proptech conferences for you to explore this September.

Tech Talk Live

15th September 2017 – London, England

From VCs to the major institutions, the world’s leading tech investors take the stage to reveal exactly what they’re looking for in a proptech company and earmark the trends they are betting on. Find out this and more as they lift the mask on proptech investment and get to the bottom of its true value proposition. Join EG at the White Collar Factory in Old Street, London for a morning of debate and discussion and your chance to network with the influencers and decision makers in this sector.

GeoVacation Showcase

19th September 2017 – London, England

Join the Geovation Hub as they discuss and display their fourth showcase of promising geospatial businesses. They have chosen some of the best for their Autumn 2017 showcase. Hear about them present and learn more about their businesses over drinks after the event.

SPD Insights

19th September 2017 – London, England

This is their first ever Resi focused insights event, so be sure to join them for an evening of debate, drinks and networking with some of the industry’s leading thinkers.

PropTech & Innovation Briefing

20th September 2017 – London, England

Proptech was the buzzword at all the trade fairs this year. Industry experts recognise the increasing importance technology and innovation have for the real estate sector. What are the key trends and what will their impact on the market be? Which sectors will benefit the most from proptech? How is technology changing services delivery in the residential sector? What about information and data – how can they help asset management? Come to this time-efficient briefing, hear the opinions and forecasts of market experts and ask your own questions.

TLA PropTech and REVO

19th – 21st September 2017 – Liverpool, England

Are you looking for clients, connections, exposure and increased brand awareness within the retail industry? Revo, combining ‘retail’ and ‘evolution’, promotes the UK retail property and place-making community. This year we are offering the opportunity to take part in a three-day live tech innovation initiative at Revo 2017.