New-build homes growing in popularity

What’s behind the trend towards newly built properties?

NEW HOMES AND APARTMENTS offer many benefits for owner-occupiers and investors alike. Not only do you benefit from a chain-free purchase but new-build properties are often more energy-efficient, built to modern standards, and require a low level of maintenance once you move in. According to a recent report, nearly 40% of all newly built homes this year are already under offer or sold (subject to contract). Compared to the same time last year, this is an increase of 9%[1]. Demand for new-build properties seems to be highest in the south of England, particularly in coastal towns such as Bournemouth and Plymouth.

TEN-YEAR GUARANTEE

Newly built properties typically have fewer problems within the first few years of buying one, and if problems do occur, there’s a good chance they will be covered by a ten-year guarantee. So, it’s no surprise that many buyers prefer this option to buy an older home, which comes with more risks and unknowns. Perhaps the biggest benefit of buying a newly built property is that they are far more energy-efficient, which also means they’re cheaper to run.

Sustainability is increasingly important to buyers, which is one factor in the rising demand for new-build homes.

NEW HOMES DEMAND

Housebuilding will need to increase to keep up with this high demand for new homes. The government has set a target to reach 300,000 new properties per year in the next five years.

To learn more about trends and information related to homes and new builds see pages 72 & 73 of The Mortgage & Property Magazine.