The latest research by the new-build sales optimisation platform, Unlatch, has found that the level of new-build property stock currently listed on the market has fallen by a quarter over the last year, with new-build homes offering the help of a buying scheme, such as Help to Buy or shared ownership, proving the most popular amongst homebuyers.
New-build market share down due to sector complications
Previous research by Unlatch found that the market share of residential transactions accounted for by the new-build sector had fallen to just 2% during the pandemic. However, their latest research suggests this is down to complications where sales completions are concerned, rather than dwindling levels of homebuyer demand.
Significant delays due to the requirement of EWS1 certificates have delayed many new-build transactions from completing, despite homes going under offer at pace. At the same time, the existing resi space has boomed due to the stamp duty holiday, further reducing the share of new-build homes where overall sales are concerned.
New-build prices outperforming existing market
Despite this, the new-build sector has been in fine form. The average price of a new-build home is currently £359,717, having grown by 21.7% in the past year alone. This rate of house price growth is almost double that seen across the existing sector (11.6%), with new homes clearly driving the current property market boom.
New-build stock availability down -24%
The latest research by Unlatch suggests that this high rate of house price growth is unlikely to subside anytime soon as new-build stock availability in the current market has plummeted by almost a quarter (-24%) since this time last year.
This high rate of house price growth is also having an influence on the new-build features that are most in-demand amongst homebuyers.
Buying schemes most in-demand amongst buyers
The level of new-build stock offering the help of a buying scheme has fallen by -40% year on year, a bigger reduction than both new homes with parking (-28%) and gardens (-27%).
What’s more, new homes offering the help of a buying scheme are also the most in-demand in the current market.
The analysis by Unlatch shows that 40% of all new-build currently listed for sale with buying scheme availability have already gone under offer or sold subject to contract. Again, this level of demand is far higher than homes offering parking (36%) and gardens (33%).
Lee Martin, Head of UK for Unlatch says: “The property market has been booming and it’s fair to say that the new-build sector has been the driving force, with house price growth across the sector outpacing the existing market by quite some margin.
With such heightened levels of buyer activity over the last year, new homes have been selling quicker than they can be delivered to the market, with overall stock levels down by almost a quarter.
At the same time, 40% of new homes currently listed for sale have already gone under offer or sold subject to contract and this supply and demand imbalance is likely to keep new-build house prices climbing over the coming year.
Hardly surprising then, that the financial foot up of a buying scheme has been and remains the most sought after feature amongst homebuyers, with properties offering such help not only seeing the largest reduction in stock but the highest current rate of buyer demand as well.”