The Intermediary – March 2025 - Flipbook - Page 84
L O C A L FO C U S
Stoke-on-Trent
Affordable areas
DAVID LOWNDS
head of products and marketing
at Hanley Economic Building Society
toke is experiencing a high right now, with property prices rising
by 17.2% last year, according to the Halifax Price Index. Despite
this growth, it remains an affordable place to buy. We have
experienced greater demand from first-time buyers, with
applications up 15% year-on-year. December 2024 was our best
December on record for applications, which we believe was influenced
by the Stamp Duty window.
Despite the drop in the base rate, most borrowers are still opting for
fixed-rate mortgages due to wider economic uncertainties.
First-time buyers (FTBs) make up 40% of our applications. On the
other end of the spectrum, we’ve seen a 22% year-on-year increase in
retirement interest-only (RIO) applications.
We host local broker events, such as breakfast clubs, to provide
networking opportunities and support.
We haven’t seen a huge demand for buy-to-let locally. However, we
also haven’t experienced a significant number of redemptions ahead of
upcoming regulatory changes for landlords.
S
Adams notes: “Predominantly,
we’ve been helping customers with
remortgages on their residential
mortgages, and we see no sign of this
slowing down.”
He points out that many borrowers
are coming off ultra-low 5-year fixed
rates secured during lockdown, or
the much higher rates from two years
ago, creating “a bumper year for
remortgages.”
However, the rising cost of living
has also led to an increase in complex
credit cases, with more borrowers
struggling with short-term credit like
credit cards.
Dominant trends
Borrowing trends in the region reflect
a growing preference for long-term
stability, with fixed-rate mortgages
dominating the market.
“Over recent years, we’ve seen a
significant shi from 2-year fixed
rates to 5-year fixed rates as customers
want security over their budgets for
longer,” says Adams.
He notes that this trend “shows no
real sign of going away,” as borrowers
look to safeguard against potential
interest rate fluctuations.
Even 10-year fixed rates are
becoming more popular, particularly
among risk-averse buyers who
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The Intermediary | March 2025
prioritise predictability in their
repayments.
Lender preferences in the area are
increasingly diverse, with borrowers
seeking products tailored to their
unique financial situations.
Adams explains: “We are a wholeof-market broker, so we have a broad
range of lenders we use.”
While no single lender dominates,
he highlights a rising engagement
with alternative and specialist lenders
to accommodate an increasing variety
of credit and income profiles.
Among the local players, Hanley
Economic Building Society has carved
out a strong presence, particularly
among first-time buyers and later
life borrowers.
“First-time buyers make up 40% of
our applications,” says Lownds.
At the same time, he notes that the
society has seen a 22% year-on-year
increase in retirement interest-only
(RIO) applications, reflecting an
aging borrower demographic seeking
flexible mortgage solutions.
In addition, Hanley’s commitment
to the local market extends beyond
mortgage offerings.
The building society also fosters
professional connections through local
broker events, such as breakfast clubs,
creating networking opportunities
and strengthening ties within the
Stoke-on-Trent property sector.
New-builds
As Stoke’s property landscape
evolves, an abundance of new-build
developments popping up in the
region continue to play a key role in
shaping the city’s future.
The average price of a newly built
property now stands at £258,000,
reflecting a -1% decrease over the
past year.
However, sales activity has
remained steady, with 210 new-build
transactions recorded.
Most of these sales occurred in the
£200,000 to £250,000 price range,
indicating a strong demand for midmarket properties.
Cooke says: “Like many
areas, there’s a push for more
affordable housing.
“Angela Rayner has been vocal about
the need for new homes, and we’re
seeing a lot of development in Stokeon-Trent.”
The city’s expansion is bringing
new jobs, increased housing demand,
and a positive ripple effect on existing
property values.
At the same time, an interesting
trend is emerging.
“There are also pockets of highervalue properties emerging, which
is an interesting trend to watch,”
Cooke explains.
Infrastructure investment is also a
driving force behind Stoke-on-Trent’s
growth. Lownds highlights the city’s
ambitious regeneration plans, beyond
just new-builds.
He says: “Stoke is currently
undergoing a major regeneration
project, which includes significant
housing developments.”
One of the most notable schemes
is the multi-million-pound Etruscan
Square regeneration project, where
Genr8 Kajima Regeneration Limited
has been named the preferred bidder.
“This highlights the city’s
commitment to growth and
investment,” Lownds notes.
Rental market
While investment in infrastructure
is on the rise, spelling out positive
trends for the future, the region’s
buy-to-let market is facing a period
of adjustment, with shiing investor
sentiment and evolving regulatory
landscapes shaping the sector.
