Housing Market Newcastle News June 2021

Which house is the most viewed in Newcastle? Which Newcastle based listed landlords finally acquire property in Newcastle? Which Newcastle home builders has made record investments? Why has the demand for “chain-free” properties increased? All these questions are answered in this months compilation of news stories around “housing market in Newcastle”

Housebuilder Bellway makes record investment in land as house prices soar

The Newcastle company said sales have returned almost to pre-pandemic levels and average prices are topping £300,000 reports Business Live.

Housebuilder Bellway says it has made a record investment in land as demand for housing has neared levels seen before the pandemic.

In a trading update to the Stock Exchange, the Newcastle company said it had seen strong sales demand in the period from February to June, with an average of 239 reservations a week. That compared to 158 last year – at the start of the pandemic – and 244 two years ago.

The company said it had made a record investment in land, with almost 16,000 plots contracted since August last year, and had a strong balance sheet, with net cash of £408m.

Bellway is expecting to complete sales of around 10,000 homes in its full year, with average prices rising above £300,000.

Chief executive Jason Honeyman said: “Demand for our high-quality new homes continues to be strong and customer confidence throughout the wider housing market is resilient.

“Customer satisfaction is high and our recently launched ‘Customer First’ programme will help to improve quality further and will build upon our continued success as a five-star home builder.

“We have continued our front-footed approach to land acquisition, making a record investment in new sites, thereby enabling us to grow sales outlets and meet the ongoing demand for new homes in the years ahead.

“This disciplined investment approach, together with our strong balance sheet, ensures that Bellway is in a good position to continue its long-term growth strategy.”

The company said it had been supported by the extended stamp duty holiday and by people needing more space to work from home.

It highlighted the growing demand for skilled labour and rising prices for building materials but said rises in house prices were currently offsetting those pressures.

Property of the Month: Angerton Terrace, Dudley, Cramlington NE23

According to Zoopla, the Property app and website, the most viewed house in the Newcastle-upon-Tyne area was a 3-bed end-terrace house in Angerton Terrace, Cramlington.

(Image: Zoopla)

The property, which is to be auctioned, has 3-bedrooms, 2 bathrooms and 2 reception rooms.

Conveniently, located about 2-miles from Cramlington station it is an easy commute into Newcastle or the wider North East.

Full details are:

The property is situated on the corner of Angerton Terrace and Wansbeck Road. Public transport links include Cramlington mainline rail station together a network of local bus services serving the surrounding vicinity. Road links including the A19, A189 and A1. Shopping amenities can be found locally within Dudley and Cramlington with an extensive range of shops, bars and restaurants being found in Newcastle upon Tyne to the south. Recreational pursuits can be found locally at the open spaces of John Willie Sams Centre outdoor recreational facilities.

First floor: Three bedrooms, bathroom/WC
Ground floor: Two reception rooms, kitchen, bathroom/WC
Outside: Rear yard.

EPC rating: E

To view: 10/6,14/6,16/6,19/6 at 11am

The property sale is being managed by Barnard Marcus. Further details can be found at https://www.barnardmarcusauctions.co.uk/

Newcastle’s Grainger acquires £57m Quayside housing development in first for home city

It comes more than two years after CEO Helen Gordon said she was ’embarrassed’ Grainger was not developing any North East sites, report Business Live.

Newcastle’s Grainger plc has snapped up a Quayside housing tower in a £57m deal – the listed landlord’s first scheme in its home city.

The residential landlord has acquired The Forge, a build-to-rent asset with 283 rental apartments and a ground floor commercial unit, from Moorfield Real Estate Fund III.

The Forge was the first project to be completed on the far-reaching plans to regenerate the Forth Banks area, spanning over 200,000sqft in the Stephenson Quarter, across one seven-storey and two nine-storey properties.

Delivered by Moorfield Group in a £30m construction project and designed by Manchester interiors specialist Koncept ID, residents of the one, two and three-bedroom apartments have access to a long list of amenities and facilities, including a gym and residents’ lounge.

As well as the 283 residential apartments and commercial unit, the 2019 scheme has 3,500 sqft of high-quality resident amenity space, including an onsite gym, residents lounge and flexible co-working spaces.

It marks Grainger’s first purpose built, BTR investment in its home city of Newcastle, where the company was established in 1912 and remains headquartered.

More than two years ago CEO Helen Gordon said she was embarrassed that Grainger was not developing any sites in the North East and last November Ms Gordon described Newcastle as a “priority area”, saying the firm was on the lookout for a development site.

In the Stock Exchange announcement the firm said Newcastle “meets with Grainger’s investment criteria as a target city in its national BTR and PRS growth strategy” and that the acquisition was in line with Grainger’s investment strategy.

Moorfield was advised by Knight Frank and Shoosmiths. Grainger was advised by Womble Bond Dickinson.

Ms Gordon said “We are very pleased to have acquired a stabilised build-to-rent opportunity that meets Grainger’s high standards and is located in our home city of Newcastle. The Forge is proven as a great place to live, and, provides us with immediate rental income, further boosting our ambitious growth plans.

“We are keen to invest further in the city, which we see as having great growth fundamentals. We believe that good rental homes attract and retain talent, which will help the city and the region succeed.

“These investment opportunities could be either forward funding or direct development.”

Marc Gilbard, chief executive officer at Moorfield Group, said: “We are proud to have delivered a benchmark for quality BTR in Newcastle. The asset has performed well for our investors since its completion in 2019 and the timing of this disposal in line with our investment fund’s value-add strategy.

“We continue to believe in the structural drivers underpinning the UK residential for rent market, where we have been at the vanguard of its evolution and where we continue to explore new and compelling initiatives.”

Zorin enters North East lending market

Zorin Finance has entered the North East region with an £11m loan to an experienced, local developer, reports developmentfinancetoday.co.uk

The funding will be used for an office-to-residential permitted development in the centre of Newcastle Upon Tyne, which is set to deliver 152 flats, qualified for the Help to buy scheme.

The lender has provided the loan on a 22-month term.

“Newcastle is set to see significant economic and population growth over the next five years, and this development will bring much needed affordable flats to the city centre,” said Henry Wilson-Holt, senior lending manager at Zorin.

“We look forward to working with the borrower and their team on this scheme and others in the future.”

Luke Townsend, founder and CEO of Zorin, commented that a shortage of housing was a nationwide challenge, not one simply felt by London and the South East.

“We are proud to be supporting some outstanding developers in the South West, Midlands, East and North West, and this now extends to the North East where we see considerable opportunity in the coming years.”

Since it launched in 2011, Zorin has provided 179 loans to UK SME housebuilders, helping to create over 3,000 new homes.

Demand for chain-free property transactions climbs in Newcastle

Demand for chain-free properties has climbed across the UK’s major cities, including Newcastle, according to research from the homebuying platform YesHomebuyers and reported by Landlord News.

The research has found that many homebuyers look to minimise current market delays for a fast property purchase.

A chain-free sale is thought to reduce conveyancing times from around 12 weeks to 4 weeks, which has become particularly sought after in the current market due to many property transactions delaying months on end at the final legal stages.

Chain-free buyer demand in the UK

Currently across the UK, 56% of all chain-free homes for sale have already been bought by buyers looking to skip the current market bottleneck. The research by Yes Homebuyers shows that in some cities this has increased considerably in just two months.

When comparing buyer demand for chain-free transactions between March and June, demand across the UK has climbed by 6%. However, Cambridge has seen chain-free property demand increase by 10% since March alone. 

Swansea has also seen a notable increase in the number of buyers snapping up chain-free homes, with demand climbing 9%.

In Southampton and Liverpool, chain-free demand is up 8% since March, with Bournemouth (7%), Sunderland (7%), Edinburgh (6%), Leeds (6%), Bristol (6%) and Newcastle (6%) also seeing some of the most significant uplifts.

Chain-free property hotspots in the UK

Chain-free stock levels have dropped across 17 of the 26 major UK cities analysed by Yes Homebuyers, and Glasgow is home to the lowest level, with just 6% of all homes listed for sale marked as chain-free.

However, half of all for sale stock currently on the market in Belfast is chain-free, while in Manchester and Cambridge, chain-free stock levels sit at 47%. Sheffield is also home to a large degree of chain-free stock at 45%, as is Liverpool (44%).

Matthew Cooper, Founder & Managing Director of Yes Homebuyers, comments: “Many homebuyers have now accepted the fact that a stamp duty holiday saving is no longer on the cards, but that they will have to contend with the long market delays that have materialised as a result of the initiative.

“In this respect, a chain-free purchase will, at least, provide some hope of reducing the transaction timeline, and so it comes as no surprise that their popularity has increased substantially in many major UK cities.

“Of course, the downside to this high demand is that chain-free stock levels have dropped across the majority of cities in recent months, although some do present a far better chance of finding one than others.”

Table shows current demand for chain-free properties in each city and the change between March and June 2021
LocationDemand – chain free (June 2021)Difference
Data sourced from Rightmove and Zoopla
Table shows current level of chain-free property stock in each city and the change between March and June 2021
LocationStock – chain free (June 2021)
United Kingdom36%
Data sourced from Rightmove and Zoopla

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