Major investor steps in as housing market resumes

NORTHERN Ireland’s housing market has reopened to a new era of socially distanced viewings and uncertainty about the impact of an economic recession.

But for now, rising unemployment and a Covid-19-induced downturn is not undermining the enthusiasm of property developers and builders.

And Belfast Telegraph sister website Propertynews.com has revealed its top 10 most viewed properties since the market opened to viewings, transactions and house moves on Monday.

The market for new homes has also attracted a new operator, London-based investor and developer Farleigh.

Co-founder Robert Mulligan says Farleigh wants to invest around £10m in housing here after selling a portfolio worth around £95m in the south-west of England.

Farleigh is backed by investors who Mr Mulligan says have been reluctant to come into Northern Ireland up until now.

But he said political support for investment in infrastructure is crucial.

“We’re bringing funding partners into Northern Ireland which had been hesitant to do so up until now,” he said.

“Covid-19 has not changed their view of NI but what they are keen to see is more political support around investing in infrastructure such as water and the drainage system.

“Banks are nervous because there isn’t that focus on infrastructure spending which is much needed here to fund more units.”

Mr Mulligan is also working on a development of 88 luxury homes in Moira, Co Down in a joint venture with Mayfair Homes.

Prices range from around £200,000 for a small semi to £405,000 for a five-bed.

Meanwhile, in south Belfast, Northern Ireland housebuilder Hagan Homes is launching socially distanced viewings of its development Seventy-six South.

James Hagan, chairman of Hagan Homes, said: “Transactions across the sector have naturally been put on hold but that’s not evidence of demand for new homes which is why, in accordance with the Executive’s new social safety measures, we have decided to reopen our show homes so that potential home buyers can continue to look and buy the home of their dreams.”

Mr Mulligan said the market in Northern Ireland had appealed to Farleigh, which is also working on a site in Co Antrim.

“We started to see a bit of an opportunity over here to do something different, taking some ideas from London,” he said.

“We’re looking at four or five new sites in NI to bring our capital and expertise.

“The average house price here is still fairly low so there is still room for growth.”

Property values here have been recovering gradually since the boom/bust period of 2007 and 2008.

According to the official property price index, the average price of a house here at the start of the year was £140,580.

At their lowest in the first quarter of 2013, the average price was £97,428 — down nearly 57% from 2007’s peak of £224,670.

Mr Mulligan said: “Lenders and developers don’t want to see a boom, that’s not good for anybody. But we work with lenders based in London, and they don’t have the same degree of scars that lenders based in Northern Ireland would have from the crash.”

It works with lenders including CAF Bank, the banking arm of the Charitable Aid Foundation. It backed Farleigh’s redevelopment into luxury apartments of Malone Exchange on Lisburn Road in south Belfast.

At its development in Moira, known as Moira 1, it has now put in foundations for four homes in the first phase of 17 units. Phase two will have 71 units, with the homes sold through estate agents Fetherston Clements and Robert Wilson.

He says interest has been strong despite the Covid-related downturn. But he added: “We’re aware that the full impact might not be here until the end of the furlough, but it doesn’t seem to have cooled down.”

He said future viewings could involve viewers possibly being briefed outside the property, then a family allowed to enter by themselves to view.

Mark Spence, assistant director of the Construction Employers Federation, said he believed the prices of new homes would be largely unaffected by the Covid-19 downturn, for now at least.

But he said builders will face added costs with the need for social distancing affecting the numbers of people who can be on a building site.

Builders of new homes were reporting strong demand over the first week of the market reopening but he added: “We don’t know yet if that’s a true state of the sector for a little while yet and in the back of everyone’s minds is the end of furlough and concerns for people around their own job security.”

He said a housing market crash was unlikely.

“We don’t have an inflated market like we did the last time we had a recession,” he said.

“We want people to be able to realise the value of the home they’re in to put towards the home they want.”