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.”