Recent data from conveyancing solicitors indicates a three-year consecutive decline in the interest for new build properties.
2023 data from UK conveyancing solicitors, Bird & Co, examining internal property enquiries has uncovered some revealing statistics which reflect home buyer’s behaviour last year.
The statistics show that there has been a slight decrease in the percentage of people who bought new builds vs old builds in 2023. This percentage also decreased in 2022, with figures including:
- 2021: 14.35%
- 2022: 13.68%
- 2023: 11.18%
Interest reached its peak in December, with 13.31% of enquiries regarding a new build property. However, the average of around 11% in 2023 shows just 1 in 10 Bird & Co clients were of this nature.
This implies that, despite government initiatives to promote the construction of more new properties reflected in ONS statistics, interest in new builds may not be as high as anticipated.
The statistics also indicate a stagnation in the number of first-time buyers in 2023, with 68% of enquiring buyers not in possession of a property already, a figure which has not changed since the turbulence post-Covid.
This factor could potentially explain the diminished interest in new builds, which are typically an attractive option for many first-time buyers, given that several home-buying schemes are exclusively applicable to newly constructed properties. It could also be down to the affordability of new homes, which has peaked in 2023, especially with mortgage rates at an all-time high. Daniel Chard, Partner at Bird & Co, said:
“Constructing new homes loses its purpose if they remain unaffordable, particularly for aspiring first-time buyers striving to step onto the property ladder.
The essence of promoting new developments should be rooted in accessibility, ensuring that the dream of home ownership is within reach for those embarking on this significant milestone. Otherwise, government aims of building homes and getting people onto the property ladder loses its true meaning, becoming a mere exercise in construction rather than a pathway to fostering inclusive and sustainable communities.
Our insider stats demonstrate that, so far, current schemes are having minor impacts on the overall picture for first time home buyers. Meanwhile, second-time buyers are still snapping up many properties and filling the market with more rental homes and business opportunities.”
One Response
This should come as no surprise to the industry:
a) New builds are being sold at a premium and who wants to pay a premium at the moment?
b) Help to Buy has ended
c) The general consensus is that the quality of new builds is poor and I am not seeing developers doing much to buck that opinion
d) New builds are not freely available and a lot are being purchased off plan. If you build it, they will come…
e) ‘Old builds’ are far better designed in terms of front garden, back garden, garage/parking and general space inside.
f) Facilities i.e. doctors, parks, shops, pubs either don’t appear at all on developments or spring up too late.
g) I still think that there is a lack of accountability amongst planning officers, building control, new home warranty providers and the ombudsman to bring action against poorly behaved developers. Yes they are there but in my experience those that can take enforceability against developers try their level best to get out of their obligations.
This country needs a shake up in the new build sector. Developers should be building houses that people want, people need and will stand the test of time. In my opinion, we are a long way from that.