Buyer demand in early January has been stronger than normal for the time of year, according to Rob Perrins, executive chairman of Berkeley Group.
His assessment tallies with Knight Frank data that shows an increase in activity following November’s Budget.
One reason for the recent bounce is that buyers and sellers acted shortly before the November Budget due to the speculation over property taxes. Others activated plans after the event, relieved that mansion tax rates were not set higher.
“We have had an unusually good couple of weeks at the start of the year,” Perrins said on the latest episode of Knight Frank’s podcast Housing Unpacked. “Normally you have to wait until week three, but I have been encouraged by demand.”
FINELY-BALANCED
Not that the evidence of a few weeks signals an upturn. The market is finely-balanced and could continue to strengthen or weaken once more, he said.
“Where are we in the cycle? We could have an uptick if the environment improves, or we could have another downtick. What is fundamentally important is that we get the feelgood factor back.”
An increase in domestic political volatility is one factor that could dampen sentiment.
UNDER PRESSURE
The position of Prime Minister Kier Starmer and Chancellor Rachel Reeves could come under pressure later this year if local elections go badly for Labour in May, according to former Treasury special advisor James Nation on a recent episode of Housing Unpacked.
“I hope the political instability is Westminster noise. I think what the PM is doing on the international stage for the UK is super-important. There is a strong affinity around the world with the UK as a place for investment and education,” said Perrins.
Having trained as an accountant, he also discusses his own rise to the top of Berkeley Group, what it was like working alongside company founder Tony Pidgley and his current view on the land market.
Perrins explains how the planning system has become too regulated and how that has affected viability for residential developments.
As someone closely listened to by the government, he also delivers his verdict on how easy it will be for them to hit their target of 1.5 million homes during this Parliament.
Listen to the episode on Housing Unpacked to hear his thoughts and follow the podcast.
