Brokers believe the first-time buyer sector has the most potential for growth, a lender's survey has found.
A broker sentiment poll from United Trust Bank published yesterday (17 September), found the first-time buyer sector was voted as offering residential developers the most potential for growth over the next three years.
The poll surveyed 130 property finance brokers, who ranked the potential for the family home and retirement sectors to grow joint second, with the latter jumping from last place in the same survey in 2012.
Perceived growth potential for luxury flats meanwhile, saw the least optimism from brokers.
Brokers had already seen the most potential in the first time buyer market back in 2012, when the poll was originally carried out.
Noel Meredith, executive director at United Trust Bank, said it was no surprise brokers still saw the first-time buyer and family home sectors as offering the greatest potential for short-term growth.
He said: "There is an enduring demand for good quality, sensibly priced homes all over the country and both these sectors, but particularly the first-time buyer sector, have also benefited from the Help to Buy scheme which was introduced in 2013, after the original poll was carried out."
Mr Meredith said he found it interesting how attitudes have changed towards homes for older buyers, with the housing industry recognising the UK’s ageing population.
He said: "Just as the NHS must adapt and evolve, house builders are also seeing the opportunities to build homes for older, but increasingly affluent buyers who wish to live independently for as long as possible but nonetheless benefit from living in homes designed with their needs in mind."
Alex Reynolds, financial adviser at Advies Private Clients, said product innovation has had a part to play in giving first-time buyers the ability to buy properties that are more expensive and therefore encouraging growth in the sector.
He said: "Joint mortgages, which allow parents to purchase a property with their child, are becoming more common place and a lot more lenders now offer them - older parents are also realising money from their property to help children into the market, which in turn encourages the equity release and retirement market."
Mr Reynolds said he has seen a lot more activity in the equity release market, even in the past six months, with more innovation and better products, which had made the retirement market a more attractive proposition.
He added: "Obviously the lower interest rate has helped stimulate growth in these areas and it will be interesting to see how that changes over the next few years."
rachel.addison@ft.com
