Building on success: Outlook for 2025 South West property market

Managing Director for Allison Homes South West, Steve Fowler shares his reflections and outlook on the property market for the region.

Reflections on 2024

After a challenging 2024, this year, we are starting to see an uptick of activity in 2025.

Much anticipated announcements from the new government following the general election in July and the subsequent Autumn budget have also supported market stability. The intention to reform planning is welcome and much-needed for the sector. This will streamline approval processes and make it easier for housing providers to bring new homes to the market and will be vital in areas where housing demand is high.

In Devon and Somerset, the new homes market remains highly desirable. The quest for a balanced lifestyle continues to draw people away from dense urban centres, with remote work opportunities acting as a catalyst for this trend. Changing lifestyle patterns mean that homes need to offer creative use of space and the ability to adapt and flex to the changing daily needs of life and work as we now know it.

Affordability in the region

Affordability remains a challenge; Devon is currently facing a housing crisis where locals are being priced out by second homeowners. As a leading housebuilder in the region, we have a commitment to the communities in which we build. Creating homes that are genuinely affordable for local people not only provides much-needed housing but also strengthens the regional economy and supports job creation.

This year, we secured our first partnership deal, and we are set to deliver the first units with L&G in February 2025. This will contribute to the government’s target of building 1.5 million homes over the next five years.

Our partnership deal with a regional affordable housing provider was a pivotal moment and proved our adaptability to meet the unique delivery requirements of partnership schemes, compared to open market developments.

Strategic priorities in 2025

Looking ahead, our priorities for the region are to secure more sales outlets. To do this, we need to secure more land opportunities and continue to build on our reputation as the developer that you can trust.

Our revised strategic land delivery plan focuses on a 50/50 split between open market and partnership land deals for affordable housing. Geographically, we're concentrating on sites near the M5 from Exeter to Bristol, so that we are positioned in high-demand areas.

As the market recovers, and the need for housing continues to increase, we anticipate the supply chain will come under pressure as demand outstrips supply. To address this, we're focusing on leading as a developer of choice by ensuring our internal processes are best in class.

We understand that people work for people, and our supply chain partners will choose companies they can trust—those offering continuity of work, fair compensation, respect and timely payments. These are our commitments to good business practices which are very much part of our DNA.

With our private equity backing, we can be agile in our decision-making and deal-making, including exploring joint ventures. This allows us to quickly adapt to market conditions and seize opportunities, setting us up for further growth and success throughout the region.

Looking forward

As we continue to expand our presence in the region, we are excited about the positive impact we will have on local communities. By focusing on Open Market and Partnership developments, and maintaining our commitment to quality and trust, we can help to meet the housing needs of the South West.