In the event you missed our previous episodes, please see our catch-up episodes below:
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- “Industry Insight | Multigenerational Living Is On an Extraordinary Rise “
- “Industry Insight Episode 2 | Challenges in the Mortgage Industry“
- “Industry Insight Episode 3 | Uncovering the Potential of Annexes as Holiday Lets“
- Industry Insight Episode 4 | Making the Dream Achievable | A Blissful Ending
- Industry Insight Episode 5 | An Option for Homeworking
Industry Insight Episode 6 starts with “New Housing Options Post-Covid-19”
Industry Insight Episode 6 | Could redeveloped shop units become a new option for mortgage brokers?
With New Year resolutions made, many in the UK will be looking ahead, having firmly shut the door on 2020. Despite a challenging year generally, and with our current lockdown status in force on a social and an economic level, those serving the mortgage industry can still look to the future with optimism.
Industry Insight Episode 6 | Learning to adapt
2020 was a buoyant year for some in our sector but less for others. The business development team at Harpenden has never been busier, although we are acutely aware of the need to adapt continually to serve current and emerging customer needs best. Market conditions are changing like never before. Some challenges in the market will diminish as the sector negotiates 2021, others will remain, and no doubt more will be introduced—we’ll all need to review our approach constantly.
One ongoing challenge for some years is the lack of housing stock to place the mortgage business. Industry Insight Episode 6
Industry Insight Episode 6 | The level of housing shortages
Household growth continues influencing housing demand, highlighting the pressing need for more residential options across England. Current trends suggest that new households are expected to increase by approximately 159,000 annually. This steady rise pressures the strained housing supply, especially in higher-demand areas.
A significant backlog of demand for affordable, suitable accommodation exacerbates the issue. Additionally, many households seek larger living spaces, particularly those with higher incomes. These factors collectively fuel the demand for new housing developments.
Research indicates that the UK may require as many as 340,000 new homes annually to meet current and future needs. However, the government has set a slightly lower target of delivering 300,000 homes per year by the mid-2020s. Achieving this target will require strategic planning, increased investment, and collaborative efforts across the housing sector.
Geographical variations in demand further complicate the housing supply challenge. London and the south of England face exceptionally high demand levels due to population density and economic opportunities in these regions. These areas require tailored solutions to address their unique housing needs while ensuring affordability and accessibility for residents.
Meeting these ambitious targets will play a crucial role in alleviating the housing crisis. Nevertheless, the focus must remain on creating sustainable, affordable homes that cater to diverse household needs.
Industry Insight Episode 6 | Getting back on track
In March 2020, the government introduced new measures to speed up building and modifying homes. These changes aimed to make housing more accessible, boosting aspiring homeowners and the mortgage industry. This development was undoubtedly a welcome change in the property sector.
Industry Insight Episode 6 | New housing options
Adapting redundant retail units has become increasingly common on UK high streets, offering opportunities to create much-needed housing. Repurposing prime locations for residential use is practical and addresses a growing demand for homes.
The Decline of High Street Retailers
The decline of high-street retailers was evident even before the pandemic. However, the coronavirus crisis accelerated this trend significantly. As a result, underutilised retail spaces are now being transformed. Many of these units are becoming split-use properties, combining retail and residential, or are wholly converted into apartments.
Real-Life Examples of Retail Transformations
Examples of these transformations are visible across the UK. Several projects illustrate this trend in Hertfordshire, where Harpenden Building Society is headquartered. For instance, the former Debenhams store in Welwyn Garden City is set to be partially converted into 27 flats. Similarly, vacant British Home Stores sites across the country could follow this path. Department store closures post-COVID-19 further highlight the potential for redevelopment.
Mixed-Use Developments: The Future of High Streets
Some projects go beyond simple conversions. For example, the Bircherley Green Shopping Centre in Hertford, initially built in the 1980s, proved commercially unviable. It is now being redeveloped into a mixed-use site combining shopping, leisure, and residential facilities. The site will feature 92 one to three-bedroom apartments, creating a modern, multifunctional hub in the town centre.
Supporting Housing Demand Through Policy Changes
Relaxed permitted development rights have made these transformations easier. These changes allow the conversion of offices, pubs, and other redundant buildings into residential properties without excessive red tape. Modern construction techniques, such as modular building methods, simplify and accelerate retail-to-residential conversions.
A Sustainable Solution for the UK Mortgage Market
As high streets continue to evolve, repurposing unviable retail units is set to play a key role in urban renewal. This trend offers property developers and the mortgage market opportunities to support sustainable growth while effectively meeting housing demand.
Industry Insight Episode 6 | The mortgage industry’s response
