Demand for new-build homes overshadow existing homes

Although the property market is starting to slow, Stripe Property Group claims demand for new-build homes are taking the lead.

In an analysis of activity over the last fortnight the property developer found the new-build sector has helped fuel 7.2% of all homes reaching the market for sale across Britain. 

UK areas with the largest boost

The East Midlands has seen the largest increase in for-sale stock supply as new homes accounted for 9.2% of all homes listed for sale in the last two weeks. 

Of all homes listed recently across the East of England, 8.5% have come through the new-build space. Other areas with an increase in new build homes include Scotland up 7.8%, the West Midlands (7.7%), and London (7.3%).

Of all new homes listed in the last two weeks, 14% have already gone under offer or sold subject to contract. This is 2% more than the existing market. 

One-fifth of all new homes are being purchased within two weeks in Scotland. That is 8.4% more than the 11% of existing homes that are selling within a fortnight. 

Demand for new homes is 7.5% higher versus the existing market in Yorkshire and the Humber, with the North East (+7.2%), East of England (+4.1%), and the North West (+3.1%) also seeing new-build demand overtake demand levels for existing homes. 

Managing director of Stripe Property Group, James Forrester, commented: “The property market as a whole is certainly starting to show signs of wear and tear following a period of turbulence spurred by increasing economic uncertainty. This has largely impacted the level of buyers entering the market, although we are now starting to see signs that house prices are stuttering.”

“Despite this, the new-build sector continues to demonstrate strength and resilience and not only are a consistent level of new homes reaching the market, but the demand for these homes remains substantially higher than the appetite for existing homes across the vast majority of the nation.”

“With as many as a fifth of all new-build properties selling within two weeks in some parts of Britain, the sector looks set to weather the current downturn, with new homes continuing to sell, while commanding robust market values in the process.”