New-build homebuyer activity set to spike amidst busiest time of the year

New-build homebuyer activity set to spike amidst busiest time of the year


Todays other news

Mortgage shock ahead as rates set to rise

Major lenders reprice deals as swap rates climb, adding further...

Back to school rush as 54k homes hit market

Yopa reports a sharp rise in English housing stock following...

Total bridging completions to hit £8bn by year end

Octane Capital predicts a market rebound following a slower start...

Instant offer for urgent buy-to-let mortgage

Technology helped a landlord secure rapid refinancing after switching from...

Five broker assumptions challenged

Saffron urges advisers to look beyond standard criteria when assessing...


The level of new-build properties being sold has picked up as we approach the end of the year, while sales across the regular market have dropped in the run-up to Christmas.

Advertisement

That is according to the latest research by new homes specialist Stone Real Estate, which looked at the number of transactions across each area of the market over the last five years, what percentage they accounted for in each year and how this compared to the previous months.

Advertisement

It found that on average over the last five years, the number of new-build transactions in December accounts for 11.99% of total new-build transactions for the year.

In contrast, the number of existing homes sold during the last month of the year accounted for just 8.2% of all sales on average.

What’s more, December and June are the only months of the year where new-build sales hit double-digits as a percentage of total yearly sales, with both consistently ranking as the busiest in the new-build calendar over the last five years.

There is also a clear trend where the number of new-build sales falls considerably following the June peak and then slowly gains momentum heading towards Christmas.

On the other hand, existing property sales tend to see a moderate decline from August and September heading into the festive season.

Advertisement

“The new build sector doesn’t come under the same seasonal strain when it comes to sales transactions when compared to the existing sector,” Michael Stone, founder and chief executive officer of Stone Real Estate, comments.

“This is largely because new build sales involve one buyer and on the other side of the coin you have a professional entity that continues to work right up until the Christmas break to get a sale over the line.”

He says with no complications that can come with an existing property sale, when the December rush to complete by Christmas hits, the new-build sector is better placed to ‘facilitate a greater number of sales’ despite the shorter time frame.

“One common misconception is that Christmas is a great time to find a homebuyer bargain and while true to an extent, historically new build house prices tend to stand firm, and in many cases sit higher than many previous months in the year,” he continues.

“That said, developers will often include some festive incentives to persuade homebuyers to take the plunge and this, of course, all helps favourably towards their end of year figures.”

Share this article ...

Join the conversation: Login and have your say

Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions. All comments are screened using specialist software and may be reviewed by our editorial team before publication. Introducer Today reserves the right to edit, withhold or delete comments that violate our guidelines, including those that harass, degrade, or intimidate others. Users who post such content may be banned from commenting.
By commenting, you agree to our Commenting Terms of Use.
Recommended for you
Related Articles
Domestic abusers ‘weaponise joint mortgages against women’ - claim

The cost of delay: Why affordability pressures make faster, smarter transactions a necessity

Rising affordability pressures are increasing the need for faster, more...
Flipping a thing of the past thanks to Stamp Duty 

England faces historic housing shortfall – households set to surge 17% by 2040

The number of households in England is projected to rise...
Stormy weather for homebuyers but forecast is brighter

Home buyer demand dips as purchase patterns shift across England

The study also reveals a clear north-south divide...
Brokers angry at lenders’ “brutal” buy to let arrangement fees

Landlord exodus from buy to let slows as reform deadline nears

Goodlord gathered views of over 1,200 landlords based across the...

Biggest decline in mortgage rates since October 2024

Mortgage rates recorded their biggest monthly fall since October 2024...

More mortgage rate misery to come

Rising swap rates are pushing lenders to reprice fixed deals,...

A million homeowners face £283 monthly mortgage hike

More than a million homeowners who took out mortgages in...
Recommended for you
Latest Features

Mortgage shock ahead as rates set to rise

Major lenders reprice deals as swap rates climb, adding further...

Back to school rush as 54k homes hit market

Yopa reports a sharp rise in English housing stock following...

Total bridging completions to hit £8bn by year end

Octane Capital predicts a market rebound following a slower start...
Sponsored Content

95% LTV Second Charge Mortgages, NO ERC’s and Fixed Rates starting from 3.65%

Historically second charge mortgages or secured loans as they are...

One low rate

Lenders must say what they mean and mean what they...

Send to a friend

In order to send this article to a friend you must first login. Click on the button below to login or sign up.