Nearly three-quarters of brokers operating in the specialty lending space think the “space race” is not over, according to a poll by TAB.

The short-term property finance lender polled the views of industry brokers at an event to mark the opening of its new headquarters in Hertfordshire.

While 23% of brokers said the space race was “definitely” or “probably” over, 69% said it was not. Eight percent of brokers surveyed were unsure.

Duncan Kreeger, (pictured) founder and CEO of TAB, said: “In late 2020 and early 2021, the pandemic began to drive a ‘space race’, spurring outlying suburbs. Downtown residential rents fell as tenants moved into the suburbs. In the last quarter of 2020, apartments in London were taking 20% ​​longer to rent than before the pandemic – while the time needed to
house rents in the capital fell by more than ten percent.

“Then, in the first three months of 2021, cash-strapped movers left first-time buyers lagging behind as the drivers of the UK property market as the space race brought about a shift in the long-term equilibrium of demand.

“I didn’t expect it to last until now. A year later, brokers tell us that this trend is still dominating the market. The shift to working from home during the pandemic has loosened ties to the office, and emerging hybrid working conditions are making remote suburban, more rural living more possible. Thrifty buyers target larger properties with more outdoor space.

The news comes as the Queen confirmed she was moving from Buckingham Palace in SW1A to live at Windsor Castle in Berkshire, five miles off the M25. While Buckingham Palace has 775 rooms, Windsor Castle has 1,000.

Kreeger concludes: “Given that I started my loan journey with an office a stone’s throw from the station in the heart of Marylebone, and TAB is now based in a new development on the outskirts of Borehamwood, I assume we are part of the tendency.”