Shared Ownership Goes From Strength To Strength

We hear how Help to Buy funding is fading, but Shared Ownership goes from strength to strength as we speak to Owen McLaughlin from Countrywide…

Owen, what was your first rung on the property career ladder, which led to your role as MD today?

I started in estate agency in 1988 as a junior negotiator for the Fulfords brand. I then progressed into management in sales before moving into New Homes specific agency in 2006. Since then, I have never looked back.

With eyes across the whole UK market, which pockets do you see performing particularly strongly on new home sales at the moment?

Shared Ownership is proving particularly relevant for us, with the demand for homes increasing and affordability a real issue for many buyers, especially those with a specific housing need but with lower incomes than are needed in their location of choice. As Help to Buy funding has begun to fade out, Shared Ownership will continue to be a very important vehicle to home ownership.

How do you see the UK property market performing over the next 12 months?

The general feeling is that the market is likely to remain fairly level next year, with transaction volumes not vastly different to what we saw in 2019. From a New Homes perspective, there is some commentary to suggest that delivery volumes could reduce slightly next year as the impacts of Brexit and post-pandemic labour and materials shortages show.

What lasting effects do you think the pandemic will have on the UK new homes market?

It’s probably too early to say yet, although there are definitely some smarter ways of working now and buyer experiences have been ‘modernised’. There has been an increase of digital interaction with customers pre-sale and improved sales processes as a consequence of a reduction in face-to-face meetings. Ultimately though, these are enhancements rather than substitutes as we are seeing that buyers still want to visit show homes and understand the quality of specification etc.

What incentives do you find most helpful to young, first-time buyers?

Without a doubt Help to Buy and Shared Ownership are the two most significant incentives, although for those buyers that don’t qualify for these incentives, some developers now subscribe to the Deposit Unlock scheme. This is where the house building industry led mortgage scheme allows new build buyers to purchase with a 5% deposit. This has just launched initially with 17 major builders after a successful regional pilot. Upon completion of home purchases offered as part of the scheme, the developer funds a mortgage indemnity and deposits cash to cover any potential losses. The scheme greatly reduces risk for the lender, protecting them from a proportion of the potential loss in the event of any default. The consequence of that is once again more attractive mortgage rates making home-ownership more cost effective.

Buyers are becoming increasingly focused on environmentally friendly housing, is this something you’re conscious of when marketing new homes?

Buyers are definitely conscious of this fact, but essentially all new homes are more environmentally friendly than their older counterparts. Very modern methods of construction such as Passivhaus and other zero-carbon technologies are becoming more noticeable in the market, however the costs of construction can be up to 15-20% more for the housebuilder who will inevitably look to pass this cost on to the buyer, at least in part. As such there is still some sensitivity for those buyers working to a tight budget.

Do you have any examples of eco-friendly housing that you’re marketing at the moment?

We have a range of interesting zero carbon homes in a number of locations, including Tessello Rise in St Ives. Due to complete in mid-2022, the homes include air sourced heating, solar panels, and modern technology which adapts to residents' everyday living to reduce energy consumption to a net zero. There are 9 plots in total including four and five bedroom homes, with prices starting from £825,000.

And finally, what’s next for Countrywide Land and New Homes?

After our integration with Connells Group in March this year, we feel very fortunate to have senior management who see such value and opportunity to invest in the Land and New Homes sector. We have been able to strengthen our team with the addition of more people who are experts in their field, whether that is New Homes or Land managers, who will work across the country to help our client housebuilders find new sites and development opportunities. These new appointments and the internal promotions we have made ensure that our nationwide team includes a diverse range of talent, skills and experience. Not only will this boost our land proposition, but also increases our geographical spread and transforms our services to land owners, developers and housebuilders.