Record levels of demand are driving a boom in the UK housing market.
The gradual lifting of lockdown restrictions, the stamp duty holiday, mortgages once again on offer with a five per cent deposit and record low interest rates, held again by the Bank of England last week, has seen a surge in demand.
Good quality new-builds are increasingly sought after with homebuyers and property investors are becoming more and more interested in that type of property.
Recent data from BuildScan, a snagging and defect management app, has revealed that 38.7 per cent of all new-build properties are already sold subject to contract or under offer. This is a nine per cent rise from the same time in 2020.
Snagging lists any defects in a new build home, it’s up to the buyer to report them to the housebuilder.
Housebuilding has remained remarkably resilient as the delivery of new builds is on the rise. But housebuilders are struggling to keep up with this increasing demand.
The UK Government is continuing to target a goal of delivering 300,000 homes a year by the mid-2020s. Additionally, the Government is looking to further improve green standards of new builds. This will bring forward more quality new-builds moving forward and will help the sector keep up with the growing demand.
New-builds are appealing for homebuyers, tenants and property investors for a number of reasons. When buying a property before it has been built, known as off-plan, developers often offer incentives, including discounts.
Additionally, if you invest before or during the building phase, you may even be able to customise the decor, appliances and layouts.
Some buyers and investors may also find buying a new build appealing as there is no chain. When buying an existing property, there is usually a chain above you, which can slow things down and add stress.
There is also peace of mind with new-build homes as they come with an NHBC (or equivalent) 10-year warranty. This includes a two-year builder warranty and then an eight-year insurance agreement.
With the latest environmental standards, including better insulation and more efficient heating systems, new-builds are greener properties. Most new-builds have an A or B energy performance rating and are substantially cheaper to run.
New-builds are much more appealing to tenants compared to older, tired properties. They will not have to worry about issues such as condensation, damp or unreliable boilers and old heating systems. The high environmental standards and lower bills provide additional benefits. This makes this kind of property ideal for buy-to-let investment.