New-build sales optimisation platform, Unlatch, recently revealed that over the last year the new-build property stock currently listed on the market has plummeted by a quarter.
The findings show that buyers are prioritising buying schemes, such as help to buy or shared ownership.
New build stock availability and market share are down
Unlatch reveal that the average price of a new-build property has grown by 21.7% in the past year, proving that new homes are in demand.
Although house price growth is at a high rate, this is unlikely to decrease anytime soon since new-build stock availability has dropped by 24%.
In addition to this, Unlatch found that the market share of new-build sector residential transactions dropped to 2% because of issues completing sales, as opposed to issues with the level of demand.
EWS1 certificate delays have prevented many new-build transactions from completing. While the current residential space has grown because of the stamp duty holiday, further lessening the share of new-build homes sales.
Buying schemes grow in popularity
New properties offering the help of a buying scheme are also the most in-demand in the current market.
Around 40% of all new-build currently listed for sale with buying scheme availability are already sold subject to contract or have gone under offer. This level of demand is higher than homes offering parking (36%) and gardens (33%).
Lee Martin, head of UK for Unlatch says: “The property market has been booming and it’s fair to say that the new-build sector has been the driving force, with house price growth across the sector outpacing the existing market by quite some margin.
“With such heightened levels of buyer activity over the last year, new homes have been selling quicker than they can be delivered to the market, with overall stock levels down by almost a quarter.”
“At the same time, 40% of new homes currently listed for sale have already gone under offer or sold subject to contract and this supply and demand imbalance is likely to keep new-build house prices climbing over the coming year.
“Hardly surprising then, that the financial foot up of a buying scheme has been and remains the most sought after feature amongst homebuyers, with properties offering such help not only seeing the largest reduction in stock but the highest current rate of buyer demand as well.”