modunite

modunite

March 19, 2024

Predicted future trends of residential real estate

The residential real estate market is seemingly in a state of constant flux. With new technologies entering the fray and customer demands shifting all the time, it’s essential that companies keep up with the latest developments to stay ahead of the curve.

Real estate is big business in the UK, and capitalising on the latest residential architectural trends will ensure you can secure and even grow your slice of the pie. Understanding what modern home buyers are looking for from properties can help developers to make more informed investment decisions that yield more profitable outcomes.

In this quick guide, we explore some of the trends we’re already starting to see that we expect will have an even bigger role to play in shaping the future of the industry.

Which parts of the country are developers investing in?

According to research conducted by Zoopla, homes sell fastest in the north east and north west, with the average property spending just 30 days on the market. It’s the cities in this part of the country that are of particular interest to property developers, with both the buying and rental markets seemingly thriving. In fact, properties in the north east attract an average gross rental yield of 7.2%, which is the highest average in England.

When it comes to property sales, Liverpool in the north west boasts the fastest-moving market, with houses taking an average of just 17 days to sell. North of the border, Rosyth in Dunfermline – where the average asking price is £148,000 (more than £30,000 below the national average) – recorded equally fast sales as Liverpool. These figures highlight a clear demand from both buyers and renters, and with this trend set to continue, developers could look to invest more heavily in these regions moving forward.

Especially with the government pledging more funding to regenerate post-industrial areas, predominantly in the north of the country, property developers have been alerted and could look to capitalise on the opportunities presented by these evolving markets.

Of course, the capital remains a desirable place to live, but lots of would-be buyers are being priced out of a move to London. When it comes to the property market, London is currently more affordable than it’s been at any point over the last decade, but prices still remain well above those seen around the UK, with the average property crashing in at more than £735,000 over the past 12 months. However, there are lots of positive signs for the capital’s housing market, and we can expect market conditions to improve throughout 2024.

Sustainable features in properties

Eco-friendly features in new homes are no longer just a ‘nice-to-have’, they’re now a necessity to help people to lead more sustainable lifestyles. And as efforts across the country to reduce individual carbon footprints are ramped up, it’s important for property developers to play their part in facilitating a greener future.

The government has mandated that all new homes must produce significantly less CO2 than the previous standard. Building companies are required to do this by integrating green technologies and more efficient designs within new homes to help future residents become more eco-conscious and limit their emissions. It’s all part of the UK’s long-term goal to reach net-zero emissions by 2050, and with households being the single largest contributor to national carbon emission totals, there is an obvious need for developers and homeowners to work together to build a more sustainable future.

There are lots of potential options when looking to incorporate more eco-friendly features into the homes of today. From utilising energy-saving technologies to maximising natural light and ventilation with efficient designs, sustainability should be an intrinsic part of the planning stage for any new development.

On top of your obvious eco-obligations, sustainable properties appeal more to the modern homebuyer and enhance desirability. In fact, one study reveals two-thirds of respondents believe that sustainable features are very important or quite important when looking to buy or rent a home. One in five went further to say they’d be willing to pay a higher price for a green home that will help to reduce their environmental impact and utility costs. This suggests that investing in sustainability isn’t just good for the planet, but it can boost your bottom line, too.

Flats vs houses – where is the demand?

For many years, lots of house hunters in the UK have been priced out of their preferred property type. When house prices are high, people tend to look towards more affordable options, and often the answer lies in flats. According to recent data, more than a quarter of buyers are looking at one and two-bedroom flats, which marks an increase of 5% from 2022. This demand is brought into even sharper focus in the capital, where 49% of people are looking to buy one and two-bed flats.

This doesn’t mean that demand isn’t still there for housing – just the opposite, in fact. Three-bed houses remain the most sought-after property type in the UK, with almost 40% of buyers in January 2023 searching for this option. However, this figure is lower than previous years, and the market saw a significant drop off in house sale transactions at the end of 2023, with 20% fewer sales from December 2022 to 12 months later.

Interior design trends

It’s no secret that how you choose to present a property will have a major influence on how easy it is to generate interest from prospective buyers. Virtual staging and other image rendering technologies are giving developers more flexibility over how they present their homes to the market, but show homes still have an integral part to play in the buying process.

One area that’s easily overlooked is the colour scheme. Whether you keep it consistent throughout different rooms or vary the palette to suit each space, making the right colour choices can help to leave a lasting impression. When it comes to kitchens, this year’s trends dictate that green is a sensible choice. The many different shades of this colour can give a room a feeling of calm and openness – it also aligns with the all-important theme of sustainability. Staying in this part of the house, another trend we’re seeing is the rise in ‘hidden’ kitchens. Sleek designs with concealed outlets contribute to a more modern-looking design, while also having the added benefit of optimising all the available space.

On the topic of mood-boosting paint choices, 2023 was a big year for the colour drenching trend, which is seemingly here to stay. This is where every part of a room – from the walls to the ceiling to the woodwork – is painted the same colour. Not only does this offer a seamless finish and a tranquil feel, but experts even note that colour drenching can make rooms appear more spacious – especially when using lighter shades.

These are just a handful of the many trends that have risen to prominence in recent years and are expected to remain a key part of the property landscape in the future. If you’re looking to bring a development to market, get in touch with our friendly team today, and see how professional architectural visualisation could benefit your next project.

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