New research from FJP Investment has uncovered UK homebuyers’ sentiment towards new-builds, with the majority saying they are deterred from purchasing one because they are “unattractive.”
The investment provider commissioned an independent survey of 1,000 UK-based homebuyers and property investors and found that half felt new-builds in the UK are usually unattractive, while even more (63%) consider them to be “devoid of character.”
Two thirds (67%) of homebuyers criticised new-build properties for being too expensive, saying they feel developments are often aimed at the top end of the market. The average new-build property in the UK costs £290,176, 29% higher than the average price for existing properties (£224,729).
FJP Investment’s study also showed concerns around new-builds’ location and infrastructure – 57% of homebuyers say they are put off purchasing new-builds because they think they are located in inconvenient locations; 48% worry the infrastructure surrounding new-build developments is poor.
Furthermore, three-fifths (60%) worry new-build houses and flats are often finished to a poor standard, with poor workmanship resulting in underlying issues.
However, despite clear concerns, the research revealed there is still interest in new-builds, which do boast a range of benefits. In fact, 78% of respondents said they viewed one or more new-builds when purchasing their last property.
Three quarters (75%) of homebuyers praise the modern facilities typically included in new-build developments, 70% say they like the fact the properties are more energy efficient. Around two thirds (64%) enjoy the lack of complications involved with previous owners.
Homebuyers also called on the government to do more to boost the outlook for the new-build market; 67% want the Conservative Party to do more to support the construction of new-build development in high demand areas.
The majority (64%) of respondents agreed that the shortage of available housing across the UK is one the country’s most pressing society issues at present. Government estimates acknowledge that approximately 300,000 new houses need to be built in Britain every year to account for the shortfall in suitable housing.
Jamie Johnson, CEO of FJP Investment said, “There can be no denying the huge need for millions of new houses to be built across the UK. However, our research shows that we cannot fall into the trap of simply constructing properties of a poor quality, in undesirable locations or without also investing in local infrastructure.
“Homebuyers are clearly keen to consider new-builds for their next purchase, but only if we can ensure the houses and flats are finished to a very high standard. What’s more, developers must focus on ways to inject character into projects, ensuring they feel less like a generic show home and more like a place that people will really want to live.
“FJP Investment works with investors around the globe to raise development funding, which aids the construction of new-build properties in the UK. We understand the need for such developments to meet prospective buyers’ tastes and this new study underlines how we can ill-afford to ignore the sentiments of homebuyers.”