Demand For New Build Homes Rockets 66%
Posted by Kilnstone Property on 14th July 2020 -
Demand for new-build homes has soared by 66% since the housing market reopened, surpassing levels seen before lockdown.
The upsurge seen in the six weeks since 13 May is a continuation of the trend recorded at the start of 2020 when the new build market enjoyed its strongest start to the year since 2016.
Persimmon Homes, one of the UK’s largest homebuilders, has seen a massive 215% month-on-month jump in demand through Zoopla buyer leads during the past six weeks. Leads are generated by buyers requesting more information from home builders via property listings.
The recovery in the new build homes sector significantly outpaces the revival in the market for older properties, where demand is currently 46% higher than before lockdown.
The surge in demand for new build properties has been particularly strong among first-time buyers, growing by 87% compared with levels during lockdown.
Alex Rose, director of New Homes at Zoopla, said:
“While the industry has undergone an unprecedented period, the new homes market has shown itself to be geared towards a rapid rebound.”
Why is this happening?
The resilience of the new-build market is likely to be down to two factors.
On the one hand, developers are used to having to sell homes when physical viewings are not possible.
Mark Cook, group sales and marketing director at Persimmon Homes, said:
“Our experience in offering virtual viewings, exceptional computer-generated imagery (CGI), and understanding what it takes to sell off-plan, enabled us to sustain demand, even when the market was suspended at the height of the lockdown.”
At the same time, demand is also likely to have been supported by the fact that the Help to Buy scheme can only be used to purchase a new build property.
With many lenders withdrawing their 90% and 95% loan-to-value (LTV) mortgages in the face of the pandemic, more first-time buyers, in particular, are likely to be turning to the scheme in a bid to get onto the property ladder.
The Help to Buy initiative tops up a 5% deposit with a five-year interest-free loan worth 20% of the property’s value.
All of the above information is provided from Zoopla.
Please do not hesitate to contact Kilnstone Property as we have mortgage brokers who can help with your mortgage whether it’s your first property on the Help to Buy scheme or to expand your Buy to Let portfolio. Enquire today to see how we can help you fulfill your property requirements.
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