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Is the new build market seeing a new lease of life? More new homes need to be built in the UK, it’s widely agreed, but can the new build sector deliver on the projected housing supply?
FOR SOME, the attraction of a new home lies in the opportunity of a fresh property with no previous history – a blank canvas on which its first-ever occupants can make their mark and create their own memories, unfettered by the property’s past. Some buyers, though, question the quality of new builds, preferring to opt for an older property. Others just want their own affordable home, regardless of its age. New housing supply has struggled to keep pace with ambitions. In its 2019 general election manifesto, the UK government pledged to continue increasing the number of new homes built annually towards a target of 300,000 per year by the mid-2020s. According to data from the Office for National Statistics, 210,320 dwellings were completed in the UK in the financial year ending March 2023. But these numbers could be boosted still further, it’s suggested, particularly if the economy improves – and, of course, with another election on the horizon, there will be further commitments by the political parties to increase housing supply. “The new build market is definitely getting a resurgence of interest, which is fantastic news as new build properties are provably beneficial to economic growth,” says Gary Clarke, new build
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Gary Clarke
Damian Youell
Andrew Peters
“The new build market is definitely getting a resurgence of interest … new build properties are provably beneficial to economic growth” Gary Clarke, The Mortgage Store account manager at broker firm The Mortgage Store. Clarke believes new build property is driving a housing market recovery, with good activity reported widely around the UK. “New builds are more likely to have an advantageous energy rating, meaning that you are more likely to be able to get a green mortgage, with either a
MORTGAGE INTRODUCER SUMMER 2024
favourable interest rate or additional cashback,” he says. “There are also many more buying schemes for new builds – Own New, Deposit Unlock and First Homes being a few examples.” However, there are challenges to be overcome, Clarke acknowledges. “Some lenders will still demand a 15 per cent deposit for a new build house, or even 25 per cent for a new www.mortgageintroducer.com