Newly released figures have revealed that the market may have lost its ‘froth’ but demand for new homes continues to hold up well. A positive sign that the fundamental drivers behind the sector remain positive.
According to whathouse.com, the total number of people searching for new build properties is down by 14% in June compared to May, but serious home hunters are holding strong and the number of people requesting development information remains reassuringly static against 2021 levels.
Long-held plans to move, lower maintenance costs and increased energy efficiency continue to drive retirees' interest in new build retirement homes. Multiple regions across the UK experienced an increase in the number of people searching in May than in June, with Scotland up +63%.
The end of the Help-to-Buy scheme means first-time buyer interest is dropping (down -31% nationally in June) but interest in Part Buy Part Rent (Shared Ownership) is on the rise (East of England leads with a +39% increase in June compared to May) driven in part by housebuilders provision of incentives and affordability enablers.
Daniel Hill, Managing Director, whathouse.com, comments: “The economy is under extreme pressure and the slowdown is being felt everywhere, but the need for new housing is not going to go away. Any predictions about a collapse in the housing market are extremely premature. As whathouse.com lead data shows, quality new home buyers are still there, we’re hearing from housebuilders that they’re still seeing significant interest and are achieving successful sales. With incentives and affordability enablers being offered by housebuilders, we predict the market will steer away from a major slowdown.”
Bianca Cullis, Head of Sales and Marketing, Owl Homes, comments: “Buyers are still demonstrating confidence in the industry when identifying the befits of buying new over older properties, many of our developments are forward sold as a result of this and our focus is now completing on homes reserved earlier on in the year.”
