Buyer demand in early January has been stronger than usual for the time of year, according to Berkeley Group executive chairman Rob Perrins.
His comments are backed by Knight Frank data showing a rise in market activity following November’s Budget.
Perrins said the uptick was driven by buyers and sellers bringing decisions forward ahead of the Budget amid speculation over property tax changes, while others moved quickly afterwards, reassured that mansion tax rates were not increased.
“We have had an unusually good couple of weeks at the start of the year,” Rob said on the latest episode of Knight Frank’s podcast Housing Unpacked. “Normally you have to wait until week three, but I have been encouraged by demand.”
Not that the evidence of a few weeks signals an upturn.
The market is finely-balanced and could continue to strengthen or weaken once more, he said.
“Where are we in the cycle? We could have an uptick if the environment improves, or we could have another downtick. What is fundamentally important is that we get the feelgood factor back.”
An increase in domestic political volatility is one factor that could dampen sentiment.
“I hope the political instability is Westminster noise. I think what the PM is doing on the international stage for the UK is super-important. There is a strong affinity around the world with the UK as a place for investment and education,” said Perrins.
Having trained as an accountant, he also discusses his own rise to the top of Berkeley Group, what it was like working alongside company founder Tony Pidgley and his current view on the land market.
Perrins explains how the planning system has become too regulated and how that has affected viability for residential developments.
