The new build sector is experiencing significant growth, with 48% of homebuyers in 2024 expressing a desire to purchase a new build property, according to data from Mortgage Advice Bureau (MAB)’s app. This reflects a notable increase from the 27% recorded in both 2022 and 2023, representing a 21% jump over the past two years.
The data reveal that homebuyers across a range of age groups are embracing new build properties. Notably, 46% of those aged 54-65 are looking to buy new, making baby boomers the most enthusiastic demographic.
Interest among younger generations is also strong, with 43% of those aged 19-25 and 32% of those aged 24-35 showing a preference for new builds. Meanwhile, 34% of prospective buyers interested in new builds already owned a property but were looking to move, and first-time buyers accounted for 33% of the new build market.
In contrast, only 14% of homebuyers looking to remortgage expressed an interest in new build properties. The most marked increase in demand was observed among first-time buyers, whose interest rose by 20% since 2022.
The appeal of new builds peaked in February 2024, when 59% of prospective homebuyers expressed a desire to purchase a new build, up significantly from 25% during the same period in 2023.
In England, 53% of homebuyers in 2024 reported looking for a new build property – a 29% increase over the past two years. In London, 29% of those in the market for a new build reported it as their preferred option.
Developments in the new build market are being driven by a range of factors. Younger generations – namely, Generation Z and millennials – are attracted to the modern features, low maintenance, and eco-friendly aspects of new builds, as well as the community feel they offer.
Baby boomers, who may be on fixed incomes or seeking to reduce living expenses, find the energy efficiency and modernity of new builds particularly appealing as they consider retirement or downsizing.
Government initiatives such as the First Homes scheme and the Lifetime ISA have also made new builds more accessible, particularly for first-time buyers.
In addition, associations like the Home Builders Federation are investing in educational campaigns to highlight the benefits of new builds.
Developers are further enhancing the appeal by offering incentive schemes, which include contributions to deposit, legal fees, Stamp Duty, part exchange options, and additional inclusions such as carpets, appliances, and garden landscaping.
“The new build sector is becoming increasingly innovative, so it’s no surprise that demand for these types of properties is on the rise among homebuyers of all ages,” commented Ben Thompson, deputy CEO, Mortgage Advice Bureau.
“Our data – and wider economic conditions – indicate that buyer confidence in the new build market is on the rise, and I would hope this further encourages the government to significantly accelerate the level of housebuilding in the UK. There’s never been a better time to get mortgage ready with the support of a broker. Given their expertise in the new build market, they’ll offer guidance and insight to find out if it’s the right option for you.”
