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Residential: Increased Interest in New Homes

Fri 7 May 2021

The pandemic caused construction in the new homes sector to practically grind to a holt in 2020, causing activity to fall to a level that hasn’t been seen since the global financial crisis.

  • Overall, 102,460 private new homes were started, -16% fewer than in 2019.
  • 121,850 private new homes completed.

However, as we continue to travel on the roadmap out of the coronavirus crisis, things are looking better than ever for the new homes market. We are now in Q2 of 2021 and we welcome the positive news that private new homes across England are showing an increase of 17% year on year. Gabrielle McKenna looks into the incentives that are driving increased interest in the market.

A huge 47% of all buyers will now consider purchasing a new build property, but why? In my experience:

Energy efficiency and modern living
Typically, new homes are more energy efficient due to building regulations and sophisticated technology such as smart energy systems. Buyers are drawn to the financial rewards and the fact that their money can be better spent on other aspects of their lifestyle. 

Unpack and go!
A new home and a blank canvas… buyers don’t have to worry about how they are going to tackle the previous owner’s décor or whether they have to find somewhere else to stay whilst they carry out renovation work. In a new home, a buyer typically can choose their kitchen, bathroom and even change the layout if they buy off plan. Buyers like that there should be very little, if anything, to do apart from unpack and enjoy their new home.

Warranty and insurance guarantee
In the unlikely event that there is an issue with the property, most new homes are covered by a New Build Home Warranty that will cover most defects.

Convenient location
New build homes are often located to be convenient for commuters, schools and other essential amenities.

Incentives
Many developers will offer some form of incentive when purchasing a new home with the most well-known being the help to buy scheme; with 95% mortgages launching this month, we expect to see another surge in interest in new build properties. Depending on whether they are a national or local developer, they may offer schemes such as part exchange, assisted move and shared ownership.