Buyer demand for new homes lags the re-sales market

Zoopla has released its New Homes Outlook Report, which highlights key market indicators that impact the new homes industry.

The report will feature on Zoopla’s brand new Housebuilder Hub, which will provide free data and analysis for housebuilders from the company’s market-leading research team.

Key insights in the report include analysis that delivery of new homes in 2022 will be in line with 2019 after a boost in delivery this year. Zoopla estimates that completions for the year will be 170,000 homes in England.

But while demand for new homes outside London remains above the five-year average, due to the ongoing search for space, overall buyer demand in the new homes market has not reached the same peaks seen in the resale market.

The North West, Yorkshire and the North East have seen strong new home buyer demand at more than 30% above the five-year average as the relative affordability of these markets prices in buyers and fuels demand.

In London, new homes buyer demand remains around 25% below the five-year average. London is an international real estate market, especially central London, and this market has been affected by multiple lockdowns and no international travel. Zoopla anticipates returning workers and overseas buyers will provide a boost to the new homes market over 2022.

Meanwhile, Help to Buy continues to support sales in the new homes market with the scheme supporting sales worth £91bn since its inception in 2013.

Reflecting on the launch of the report and the hub, Alex Rose, director of new homes at Zoopla, said: “We’re excited to unveil our Housebuilder Hub, which will provide regular insights to housebuilders on what’s happening in the market.

“As we head into 2022, strong house price growth coupled with robust buyer demand looks set to provide a sturdy platform for housebuilders. However, the increasing cost of living and the expected rise in mortgage rates will likely have some impact on household buying power over the next two to three years and these headwinds are worth bearing in mind.”

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One Comment

  1. PeeBee

    Funny, innt, how a portal – that does little other than add… and re-add… and add again… properties to its’ pages – can supposedly gauge “buyer demand”?  Surely “buyer demand” is shown in the number of actual sales that developer achieves?  How many waiting buyers they have on their books for the next releases?  What stock units they have sitting on the shelves?

    But no.  It’ll be the usual – how many clicks there are on those “Just added” on an almost daily basis.  The few genuine ‘new releases’ the fewer sales cancelleations that inevitably happen – and the vast majority being those RElisted adverts that we all see on an almost daily basis from the usual suspects.

    I used to count them, just for fun.  On one development in my patch they “Just added” nine times more properties in one year than there was on the whole site – which was a five-year build!

    It’s a circus… and the portals are the ringmasters.  They build the crowds up with promises of spectacular displays – and then ensure that those crowds are not disappointed.  Or are, as the case may be, when all they see is the same knackered old nags sent out to run round the ring…

    …and the next ones waiting in the wings for their brief turn.

    Allez oop!

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