Posted 24 December 2021 by
Keith OsborneWe talk to Barratt London’s sales director Ed McCoy about ‘SMRT’ living in London and how regeneration leads to transformation in the capital’s suburbs.
Ed, can you tell us what a typical day as sales director at Barratt London looks like?
I’m not sure there really is a typical day! I might be out and about evaluating the potential of a new piece of land or visiting another developer’s site and analysing what the competition has to offer. Or I could be at my desk looking at the day-to-day sales performance and how we can drive up the rate of conversion from initial interest, or analysing the effectiveness of where we spend our marketing budget and reallocating it to give us the best performance.
Barratt London offers buyers a service called Movemaker, can you tell us more?
We are always looking for ways to make the housebuying process easier for customers, and while the majority of our sales at the moment are to first time buyers, we also offer assistance to those moving up the ladder. Movemaker is a simple scheme where we can take some of the stress out of moving by paying for an estate agent to sell a customer’s existing property.
SMRT living at Eastman Village
What are the current market trends you’re noticing across your new build schemes, are people looking for different things since working and living through the pandemic?
It has definitely had an effect on customer aspirations – in particular, people are now looking for outdoor space, ideally a combination of large outdoor areas like communal gardens and roof terraces alongside their own private pocket of space. We are in a great position to meet that demand as every one of our London properties comes with either a private terrace or balcony. We’ve also seen an increase in demand for two-bedroom homes where the second bedroom can be used as a home office. There’s definitely a feeling now that a home must provide space for a workstation, whether that’s part of an open-plan area or a separate room, as well as fast broadband to make working from home a comfortable option. Buyers looking for a sense of community spirit and belonging have sought out our schemes this past year, knowing that our new builds offer are more than just homes; it’s the full package for them – cafes, community centres, schools, gyms, residents’ groups, and huge communal gardens.
Will Barratt London begin to explore development opportunities beyond its current patch now that many commuters are splitting their working week between the office and home?
We only develop within the M25; but what we have seen over the past three or four years, starting long before the pandemic, is a move out of Zones 1 and 2 towards the suburbs, particularly to Zones 3 to 6 where you get more for your money while having strong commuter links. Major transport improvements, like the Elizabeth line, are cementing these trends.
What would be your bet for the next hotspot in London and surrounding suburbs?
I don’t think there’s a single hotspot; there are many in London and it’s all to do with big regeneration schemes. In these areas, developers are not only delivering new homes but also infrastructure that transforms the whole area, including shops, restaurants, and public open spaces – an entire, brand new community. What’s even better, is that people who buy into these areas at an early-stage experience some of the best capital uplift in the city, giving first time buyers the agility to become second steppers much faster than they’d ever planned. For Barratt London, our developments at Hendon Waterside and Eastman Village in Harrow fall into this category, as both are major regeneration schemes with more than 2,000 new homes, and both are massively improving the local area.
Hendon Waterside
What exciting new schemes do you have in the pipeline before the end of the year?
We are excited about the launch of our new SMRT homes, which are well-designed, high spec units that are smaller than the standard Barratt London product but within GLA space standards. These compact, clever 37-sqm one-bedroom homes are aimed at young professionals and key workers who are stuck renting or living with parents and haven’t been able to afford to move into their own home. By keeping the price below £300,000, we are supporting a new generation of young people to buy a first home in the capital. We’re not talking shoebox living either – our SMRT homes were designed by senior external architects and interior designers and tested by real people living in the space, so we can promise that they are comfortable, practical and surprisingly spacious-feeling, with floor-to-ceiling wardrobes and a private balcony. If successful, Barratt hope to roll-out a version of SMRT across other UK cities too.
If you had a crystal ball, what would your predictions be for the central London property market next year?
The central London market is incredibly volatile in terms of pricing and demand, so it’s pretty hard to predict, but most commentators are quite bullish about long-term growth prospects. Certainly, we can see that larger family homes in west and south-west London are in very high demand. Our most central development is Western Circus in Acton, just five minutes’ walk from the Zone 2 East Acton station, which is already more than 70% sold, so we are certainly seeing a continued demand.
High Street Quarter
Many of Barratt London’s developments offer Help to Buy; can you tell us what will happen once it ends?
We most definitely cannot go back to the scenario where people couldn’t get on to the property ladder – the government wants to see 300,000 new homes built every year, and no one wants that to grind to a halt. It will probably be a team effort – the government’s 95% mortgage guarantee scheme has encouraged lenders to be more flexible and the First Homes initiative may also have an impact in the future. Barratt are looking to support this trend through new schemes like Deposit Unlock and others that are about to launch. Alongside that, developers are also doing their bit – our SMRT homes give people who find it hard to buy, especially singles, a chance to get on the property ladder at a lower starting point, without ending up having to pay a chunk of their capital back to the Government when they are ready to upsize.
What would your top tips be for first-time buyers looking to purchase in London?
First of all, I would make sure your finances look as streamlined as possible, keeping a check on direct debits and credit cards. The mortgage market is really strong at the moment, so even if you think you might not have the healthiest financial situation, make sure you come in and discuss how best we can help you.
Secondly, don’t just limit your property search to a small geographical area of London. If you work in the centre, then you can travel in from any area that has good connectivity, so look for the best value property you can find in a regeneration zone where you will have the best opportunity to get high capital growth.
Finally, choose your developer with care, as they vary immensely in terms of the quality and service they offer. Do your research, look at Trustpilot reviews and check their HBF star rating to make sure you buy from a reputable company.
And finally, what’s the best question new home buyers can ask sales staff when viewing a development?
Don’t just ask one question – ask hundreds of them! Ask as many questions as you need, so you are really comfortable that you have made the right choice. Make sure you know about your obligations in terms of service charge and ground rent, find out what the EPC is and what the energy charges are, check out the parking situation. Go in with your eyes open and the full facts. It’s easy to get carried away with the excitement of buying a home, but it’s important that you fully understand what you are committing too.
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