The Intermediary – September 2026 - Flipbook - Page 107
L O C A L FO C U S
Worcester
Cautious demand
DANIEL COOPER
director at Clearpath Mortgages and Protection Ltd
teady is the best word for the market. Base rate has been held
since July, and the market’s broadly expecting the next move to
be down. at’s put a lot of buyers and sellers in a holding
pattern, because everyone can see rates are more likely to ease
than tighten from here, so there’s less urgency to move than there was a
couple of years ago.
Product choice has improved as rates have eased through the year,
and that’s brought more people out to get themselves mortgageready rather than sitting on their hands. First-time buyers especially
are coming back, though carefully, and with none of the bidding-war
urgency we saw in 2021 and 2022. Buyers want certainty before they
commit, so a chain-free position and a mortgage agreement in principle
count for more than they used to. Energy efficiency is showing up in
what people will pay, a well-insulated, Energy Performance Certificate
(EPC) B property with room to work from home commands a premium
over an equivalent period property that doesn’t. I’m seeing more clients
whose situation doesn’t fit the standard mould coming through the
door, blended families, people rebuilding aer separation, self-employed
income, income that includes benefits. at’s always been Clearpath’s
focus, but it’s a bigger slice of the market than the mainstream lending
model assumes.
In terms of local development, Shrub Hill is the one to watch.
ere’s over £50m of funding already in place. For buy-to-let purposes
especially, it’s a good marker of where the city’s heading – professional
tenants who want modern, well-connected housing rather than the
traditional student or HMO stock.
S
Worcester city, with a housing plan to
provide over 10,000 new homes in the
next 15 years.”
Further development is proposed
near Worcestershire Parkway Railway
Station, where Penman highlights
plans for a new 10,000-home town.
The scale of construction is also
raising questions about whether local
infrastructure will keep pace.
Penman says: “While new housing
is welcome, there are understandable
concerns among existing and
prospective residents about whether
supporting infrastructure – such as
schools, healthcare, roads and public
transport – will keep pace with the
scale of development.”
Closer to the city centre, Cooper
identifies Shrub Hill as “the one to
watch,” adding: “It’s a regeneration
of the old industrial corridor around
Shrub Hill station into a mixed-use
quarter, a new station plaza, Grade A
office space, and a real mix of housing
from studios up to three-bedroom
townhouses, all built to [Energy
Performance Certificate] B or beer.”
Cooper sees the scheme as
significant for the rental market, too,
particularly as Worcester looks to
aract a different profile of tenant.
He adds: “For buy-to-let purposes
especially, it’s a good marker of where
the city’s heading, professional
tenants who want modern, wellconnected housing rather than
the traditional student or house in
multiple occupation (HMO) stock.”
Buy-to-let market
Worcester’s private rented sector (PRS)
accounts for 23% of local housing
stock, noticeably below the England
and Wales average of 27.1%. Indeed,
advisers report a mixed picture for
landlord activity.
Penman describes the buy-to-let
market as “more subdued than in
previous years,” with higher taxation,
regulatory changes and finance costs
prompting some smaller landlords
to reconsider their position. He says
those with one or two properties are
increasingly questioning whether it
remains worthwhile to retain them,
while larger portfolio investors,
particularly those operating through
limited companies, remain active
when suitable opportunities arise.
Cooper has seen a different trend,
however, with buy-to-let business
busier than it was two years ago.
Falling mortgage rates and greater
product choice have helped with this,
particularly for landlords with larger
or more complex portfolios, although
lending conditions have not eased
across the board.
He explains: “It isn’t universally
easier, though, some lenders have
tightened their stress testing on
portfolio landlords even as headline
rates fall, so affordability still needs
proper aention rather than chasing
the lowest rate advertised.”
Locally, Cooper expects investor
interest to remain concentrated in
areas with stronger rental demand,
including around the university and
locations aracting professional
tenants. He points in particular to
developments such as Shrub Hill
for their potential to supporting
that market.
Future outlook
While activity in Worcester has
slowed, it is clear that the market
itself is becoming more varied.
From first-time buyers and those
with more complex circumstances,
to landlords navigating changing
lending conditions, finding the right
route through the market increasingly
depends on understanding the best
options available.
That variety is likely to remain as
the market develops, with thousands
of new homes planned across the area
expected to bring further change.
While this could create further
opportunities for buyers and investors,
the pace of development will also
put greater focus on infrastructure
and how the market responds to
new supply.
For Green, this makes seeking
advice early as important as ever.
He concludes: “It is important
that buyers speak to a good adviser
who has the right level of access to
products. As advisers, we can make
homeownership a reality, not just
a dream.”
September 2026 | The Intermediary
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