Nigel Stockton, financial services director of Countrywide, said he believed the market would hit £8.5bn by the end of 2012.
He also believes we’re past the bottom of the new build market with builders now buying land and building again.
Stockton said: “Developers are experiencing a resurgence in profits with Bovis, Redrow, Barratt Developments and Galliford Try reporting profits of late.
“This, coupled with a rise in new build lending and buy-to-let which could rise by as much as £2.5bn to £16.5bn this year, is encouraging news for developers.”
Yesterday’s launch of NewBuy – the government backed mortgage indemnity scheme – would underpin this growth, he said.
“NewBuy offers significant opportunities for developers, purchasers, homeowners and brokers alike,” he said.
“Finally it seems that all the pieces are starting to fall into place for the new build market; on the purchase side NewBuy will significantly help buyers struggling with the 20% deposits demanded by many high street banks.
“On the planning side, our colleagues in land and new homes are braced for the National Planning Policy Framework announcement, due later this month, which many hope will put right arduous and antiquated rules that hamper the current planning system.”
However he raised concerns about wider funding in the second half of the year which could impact on both transactions and remortgage.
“With interest rates looking stalled it’s difficult to see this sector growing materially,” he added.
