New-build buyer demand keeping the property market afloat
Research by property developer, Stripe Property Group, has revealed that while the property market may be starting to cool, the appetite for new-build homes from the nation’s homebuyers remains stronger when compared to those purchasing existing homes.
The analysis by Stripe Property Group shows that in the last fortnight, the new-build sector has helped fuel 7.2% of all homes reaching the market for sale across Britain.
The East Midlands has seen the largest boost to for sale stock supply courtesy of the new-build sector, with new homes accounting for 9.2% of all homes listed for sale in the last two weeks.
8.5% of all homes listed recently across the East of England have come via the new-build space, with Scotland (7.8%), the West Midlands (7.7%) and London (7.3%) also enjoying some of the largest supply boosts from new homes.
But it’s not just supply that is benefiting from new-build delivery, the sector is also helping to fuel demand.
14% of all new homes listed in the last two weeks have already gone under offer or sold subject to contract. This is 2% more than the existing market, where just 12% of recently listed homes have already sold.
In Scotland, a fifth of all new homes are being snapped up within two weeks, 8.4% more than the 11% of existing homes that are selling within a fortnight.
Demand for new homes is 7.5% higher versus the existing market in Yorkshire and the Humber, with the North East (+7.2%), East of England (+4.1%) and the North West (+3.1%) also seeing new-build demand sit some way above the demand levels for existing homes.
In fact, demand for new homes is higher in every region of Britain bar three – the South West (-0.5%), London (-0.7%) and Wales (-1.5%).
Managing Director of Stripe Property Group, James Forrester, commented: “The property market as a whole is certainly starting to show signs of wear and tear following a period of turbulence spurred by increasing economic uncertainty. This has largely impacted the level of buyers entering the market, although we are now starting to see signs that house prices are stuttering.
“Despite this, the new-build sector continues to demonstrate strength and resilience and not only are a consistent level of new homes reaching the market, but the demand for these homes remains substantially higher than the appetite for existing homes across the vast majority of the nation.
“With as many as a fifth of all new-build properties selling within two weeks in some parts of Britain, the sector looks set to weather the current downturn, with new homes continuing to sell, while commanding robust market values in the process.”