FTBs make up 59% of new-build purchases, research reveals

Alexander Hall’s internal data showed first-time buyers (FTBs) made up 59% of new-build transactions, but homemovers accounted for 22% and buy-to-let (BTL) investors 19%. 

The research also found 27% of new-build buyers were aged 40 or over. 

Studios and one-bed flats made up 41% of sales, but two-bed properties were the most popular at 45%. 

Three-bed homes accounted for 11% of transactions.

FTBs benefited from chain-free properties, reduced risk of delays, and access to schemes such as Deposit Unlock and Own New. 

Homemovers bought move-in-ready homes, with the option to buy off-plan and influence design. 

Energy efficiency was also highlighted, along with locations close to green spaces and transport.

Landlords saw higher-quality tenants and higher rents for new-builds, especially where there were co-working spaces or smart technology. 

All new-builds offered energy performance certificate (EPC) A or B ratings, meeting rental standards set for 2030. 

Lower maintenance costs and 10-year warranties were also reported.

Lender data showed improved mortgage accessibility for new-builds with energy-efficient products, lower rates, and greater borrowing potential. 

There were more low-deposit options, acceptance of developer incentives, and longer mortgage offer periods for off-plan purchases. 

Lending flexibility was reported for professional occupations, key workers, and FTBs.

Stephanie Daley, director of partnerships at Alexander Hall, said: “With rising energy costs and stricter regulations on property standards, new-builds offer first-time buyers, homeowners, and landlords a future-proof solution.

“Not only are they more energy-efficient, saving hundreds on bills each year, but they also come with developer incentives, modern amenities, and fewer maintenance concerns. 

“In today’s market, buying a new-build is not just a smart financial decision, it’s a lifestyle upgrade.”

Daley added: “We’ve also seen lenders introduce a range of new products and initiatives to help the nation’s homebuyers when it comes to securing a mortgage on a new-build property, further boosting appeal beyond existing incentives. 

“The combination of low-deposit options, enhanced income multiples, and specialist purchasing schemes is creating opportunities for buyers who may have thought a new-build was out of reach. 

“With the right guidance, now could be one of the best times in recent years to secure a new-build home.”

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