One-on-one: Iain Berry, Connells Land & New Homes

Iain Berry, Connells Land & New Homes managing director, tells us about the ‘lockdown effect’ and why it might be changing the landscape for new homes.

We hear why new homes out of town are being sought out with family living – and working – in mind, and why raised vegetable beds might become the next landscaping trend.

Connells Group was founded in 1936 and is now a 600-branch estate agency with branches throughout the UK; can you tell us a bit about your role here?

My role is to oversee the running and management of the Land & New Homes business for Connells. The business is split into six divisional centres spanning from the Midlands through Oxfordshire, the Home Counties, and stretching from Kent through to Devon in the South. Within each division we have a team of Land and New Homes professionals responsible for assisting the development industry in aspects of acquiring and selling development land, as well as the marketing and sale of new homes. My role combines business development, business management and the development and retention of the team.

With many reports of a dramatic increase in buyer activity and enquiries, how are you finding business?

Business levels have been very encouraging. We are monitoring our new homes performance against sales volumes that were being achieved pre-lockdown, as well as for the same period last year. I am pleased to report that we are now trading slightly above pre-lockdown levels on a weekly basis and are 15% up on the first two weeks of June compared to last year. Whilst there is speculation that this activity is just the release of pent up demand, I am of the opinion volumes will be sustainable due to the imbalance between demand and current supply, combined with the ‘lockdown effect’. For many people, lockdown has given them time to evaluate their lifestyles and living arrangements, and this has prompted many to realise what they want in a home, and that a move is required to secure what is important to them.

Felstead Way in Luton

We are already seeing an increase in the number of buyers looking to move out of key towns and city centres, such as London and Birmingham, to more rural locations as working from home has become the new norm. Working from home has also created demand for accommodation better suited to allowing families to work remotely. We are seeing a demand for the ability to comfortably work from home, and not just for one member of the family. This could be for both homeowners and their children if still living at home and working.

In respect of our land operation, our professional division has seen activity pick up to levels ahead of pre-lockdown. Most of this activity has been from housing associations requiring valuations on pending purchases. In respect of land sales and acquisitions, developers have shown a continued appetite for all types of deals. Now there are signs that the market has returned to pre-lockdown levels, I can see this building as house builders try and fill the void in their programmes as a result of three months of reduced activity.

Arden Gate in Birmingham

Are there significant geographical variations in business, with some areas performing significantly stronger than others since the market reopened?

Demand in the Home Counties has seen a significant spike, with buyers moving both locally and out of London. The Midlands and the surrounding areas of Birmingham have seen the same effect. With interest rates at rock bottom and volatility in the stock market, investment purchases by private individuals, as well as companies, are being considered to make a return on savings.

How are new homes' sales performing in your estate agencies at the moment?

New homes are in high demand, and we are finding that now more than ever buyers are seeking maintenance and chain-free, energy-efficient accommodation with all the latest kitchen and bathroom trends.

What new homes' schemes are you promoting at the moment?

We are currently instructed on over 300 schemes across the country. These range from bespoke ultra-modern luxury homes and new settlements being created on the edge of towns, to Shared Ownership accommodation, helping buyers take their first steps onto the property ladder. The service we provide is bespoke to each client and designed to enhance their offering. We strive to make the house buying process as easy as possible for the purchaser, providing dedicated new homes sales staff and management as well as new homes mortgage advisors and conveyancing specialists.

How are you reassuring staff and customers that visiting new home schemes is safe within the current climate?

Safety is of great importance to our company, with the wellbeing of all of our clients and colleagues our number one priority. During lockdown we have had a senior working party look at all aspects of health and safety, with extensive planning and training to ensure that we are operating as a ‘Covid-19 secure’ agency. To reassure and best serve our customers and staff, all the latest safety practises and precautions are in place across our sites to ensure every appointment and viewing is undertaken in a secure manner. These include appointment-only viewings, observing social distancing at all times; and utilising signage, hand sanitiser stations, new layouts and protective screens. So far, our estate agency offices and new homes sales centres have found the new standards welcomed by clients, customers and staff, with some really positive feedback on our measures. Making people feel comfortable and safe is now a key part of the sales process and just as important as being able to demonstrate the benefits of our client homes.

Olds Mews in Broadmayne, Dorset

Are you offering any incentives to potential buyers of your new homes, such as Help To Buy or Part Exchange?

Help to Buy is now offered on the majority of developments that meet the current criteria. The fact that this is set to change from 1 April next year, is also fuelling demand. From this date Help to Buy will only be open to first-time buyers and there will be regional price caps, whereas currently it is open to any buyer (subject to you not retaining a second UK home), and the price cap is £600,000 across the country. Part Exchange is also on offer on selected developments.

And finally, what's your prediction for the next trend in new home interiors in 2020/21?

Fitted furniture in studies to allow buyers to have a ready-made home office, flexible family spaces such as bedrooms that can easily switch between being used as a bedroom and home office, and finally, garden design. I can see buyers seeking out, and housebuilders placing a greater emphasis on outside spaces after the effects of lockdown, and expect more developments to show this off – perhaps with raised beds to grow your own vegetables!