Space still the driving feature for new-build buyers
Research by Warwick Estates reveals that terraced homes with parking and gardens are the most in-demand new-build property types in the UK, with flats lagging far behind as the race for space created by the pandemic continues to see buyers craving larger properties with private outdoor areas.
To calculate demand, Warwick has measured the number of new-build homes currently listed on the market against the number of those that are already under offer or sold subject to contract (SSC). For example, if there are 100 properties and 50 of them are already under offer or SSC, demand is 50%.
The research reveals that the most in-demand new-build property type in the UK is terraced homes with demand currently sitting at 41%. This is followed by semi-detached (40%) and detached (32%). Bringing up the rear are flats, with demand currently sitting at 28%.
Despite this, flats are the only new-build property type to have seen demand increase in the past year, rising by 1% while all others have fallen by -4% to -5%.
In London, the pattern is very similar but this time semi-detached homes (53%) are the most in-demand, followed by terraced (37%), detached (30%), and flats (21%). Unlike the wider UK, all property types have seen a demand increase in London in the past year - most notably semi-detached homes which have increased by 30% - except for detached homes that have seen demand fall by -4%.
As for new-build property features, the UK’s most in-demand is parking space (37%), followed by a garden (34%) and properties sold through a buying scheme (17%). This order of demand is repeated in London.
UK demand for buying scheme new-builds has declined by -25% in the past year. In London, it’s declined by -2%. The reason for this fall is likely the end of the government’s Help To Buy scheme which closed in May 2021. It has since been replaced by a new, similar buying scheme, but one that can only accessed by first-time buyers rather than anyone who wants it. This has clearly contributed to significantly lower demand for buying schemes this year than last.