According to the latest data released by WhatHouse?, high levels of demand from buyers continue to outstrip the number of new-build homes there are for sale. The desire for more space and people’s reinvigorated desire to connect with nature has driven an outward migration from cities, increasing demand for suburban homes that are largely being met by the new homes sector.
Figures show that during October, the top three home search regions in Britain were dominated by the South with the South East of England seeing 16,111 new home buyer searches, South West of England - 8,627 new home buyer searches, and the West Midlands - with 8,596 new home buyer searches
The volume of new home searches was up across England, Scotland and Wales by 19.8% in October, compared to 2019’s ‘normal market conditions’.
WhatHouse? also report that the number of new home properties coming to market was up compared to summer, particularly in Help to Buy and Luxury categories, but not enough to satisfy strong buyer demand for new home properties.
Daniel Hill, WhatHouse? Managing Director comments: “Competition for new homes remains healthy this autumn, with average prices increasing by almost £6,000 in the month. Although more new build properties are coming to market, the level is still not enough to meet demand. Consequently, price uplifts have been experienced across the UK, with nine of the eleven regions of Great Britain recording an uptick.
"Looking forwards, WhatHouse? predicts that prices will once again cool or flatten. Much will depend on local factors and micro-economies will influence the performance of individual developments. Housebuilders will be looking very carefully at their cancellation rates throughout the next few months and will expect to have to work harder for each sale. The 80/20 rule for development sales will become more apparent and we are already beginning to see incentives being used on slower developments.”
