More demand for urban properties. Mortgage woes. Prices are still up on pre-COVID levels.

Predicting the economy seems difficult at the moment. Inflation and the continued cost of living crisis make both the long and short-term seem unpredictable. Yet amongst the negativity, a few trends that homebuilders should be aware of are emerging.

Increased demand for urban properties

According to property portal Zoopla, rent in rural areas is growing at a rate below average at only 6.6% or approximately ￡67 a year. In comparison to rents in cities that have grown at rates above 10%.

Over recent months with the move to hybrid and in-person instead of remote working, urban properties are once again more desirable and more likely to appeal to people returning to the office.

Even Zoom, have asked their staff to return to in-person working.

Mortgage Difficulties

This all comes in the wake of housing prices declining at their fastest rate in 14 years on average by 4% and the number of 36-year mortgages quadrupling.

Earlier this month, The Guardian reported on the increasing number of insolvencies in the housing sector alongside the stronger incentives that homebuilders are having to offer to encourage home buyers.

In The Guardian's article, Cameron Homes speak of offering upgrades such as carpets for free. A complicated process to keep track of, but a powerful way of encouraging home buyers into new properties.

Properties still costs more than before COVID

However, it's not all bad news, according to Halifax the average property price still exceeds pre-covid levels by ￡45,000 and mortgage rates are being reduced by lenders.

As of August, the economy is righting itself, there may be an increased demand for more urban developments and for those with strong commuter links.