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News Rise in demand for new build homes

Sun,05Jul2020

Rise in demand for new build homes

  • Rise in demand for new build home

Rise in demand for new build homes

 

 

 

 

 

 

 

 

 

 

 

Demand from consumers, including buy-to-let investors, for new build

homes has increased over the past 12 months, new figures show. 

Fresh applicant data collected by the global property consultancy

reveals that interest for new build homes in the first two weeks of

June 2020 is up 4% year-on-year, with interest expected to rise

further as the month progresses.

Pent-up demand for new homes in the UK is triggering a rise in

the number of people looking to buy a new build home, with

viewing numbers having picked-up noticeably over the last few

weeks. 

With many sales and marketing suites starting to reopen,

viewing levels were only 6% below the five-year weekly average 

Oliver Knight, a residential research partner at Knight Frank,

said: “The initial signs suggest that sentiment in the new

homes market has held up relatively well, with a market

that was dormant for eight weeks coming back to life.”

Knight Frank has witnessed a marked uptick in interest for

new build schemes across the UK.

In the capital, for instance, property investment firm

Almacantar has agreed seven sales across its London

schemes since the beginning of lockdown, which it says

demonstrates “the enduring appeal for best-in-class

homes in the capital”.

While demand is high, supply has been effected by the

widespread suspension of development in April, which

has impacted housing delivery. 

Knight Frank is predicting that total new build housing

delivery will fall by 35% in 2020, compared with last year. 

James Mannix, head of residential development at Knight Frank

added: “Housebuilders will be keeping a close eye on the

recovery of the housing market; once they start to see demand

return, they will look to gradually increase output. 

“The speed of this demand increase will also effect land-buying

decisions. Deals are still taking place, but at a slower rate with

delayed completions, Covid-19 clauses, and extensions to bid deadlines.”

Knight Frank’s outlook suggests supply is likely to remain

constrained for the next 12-18 months, but an immediate pick-up

in the demand for new homes, coupled with pricing remaining firm

and the long-term planning pipeline looking strong, paints a fairly

positive picture for development, despite current challenges.