Demand for new build across the UK’s major cities has shown marginal signs of decline in Q3 overall, but that many major cities continue to see the sector go from strength to strength, the latest market analysis by Unlatch has revealed.
Demand for Britain’s new build homes has decreased in the past quarter, falling from 34% in Q2 2022 to 29% in Q3 2022.
In some major cities, however, demand is much higher and has seen a significant increase over the past three months.
Portsmouth is home to the highest demand for new build homes at present, with 63.9% of all new homes listed online already sold subject to contract or under offer.
Bournemouth is also currently seeing some of the highest demand for new build homes at 54.1%, along with Bristol (44.7%).
When it comes to the highest uplifts in demand, Portsmouth once again ranks top with a 23.2% increase between Q2 and Q3. Swansea has also seen a notable increase (+7.3%), as has Leicester (+2.8%).
London (+0.4%), Newport (+0.4%) and Plymouth (+0.1%) are the only other cities to have seen an increase.
New home stock boosts
Britain’s new build stock levels remain unchanged in the past quarter, making up just 6.6% of the housing market in both Q2 and Q3 2022.
However, a number of major cities have seen the level of total stock accounted for by the new build sector climb in Q3, including Portsmouth, Glasgow, Aberdeen, Newport, Plymouth, Swansea, Leicester, Manchester, Bristol and Bournemouth.
Lee Martin, head of UK for Unlatch, said: “With the cost of borrowing on the rise and economic uncertainty infiltrating every news headline in the land, it’s hardly surprising that the nation’s new build homebuyers have paused for breath in the third quarter of this year, following an unprecedented period of market activity.
“But despite this marginal quarterly decline in demand for new homes, many major cities continue to see a healthy level of buyer demand, with a good deal also seeing an increase in new build stock available on the market.
“With more new build stock reaching the market, we expect to see demand levels lift as we approach the end of the year, as homebuyers look to secure a purchase now while mortgage rates remain favourable.”
