Nearly half (48%) of homebuyers in 2024 expressed a desire to purchase a new build property, according to data from the Mortgage Advice Bureau.
This represents a 21% increase in those who wanted to buy a new build in 2022 and 2023 (27% for both years respectively).
Some 34% of those wanting to buy a new build in 2024 were those who currently owned a property but were looking to move home, closely followed by first time buyers (33%). Meanwhile, only 14% of homebuyers who were looking to remortgage expressed a desire for a new build.
The most marked increase in demand over the last two years can be seen in the first time buyer market, having increased by 20% since 2022.
The appeal of a new build property among prospective homebuyers over the last 12 months peaked in February 2024 at 59%. This marked a significant increase from the same period in 2023 (25%).
The key factor behind this was a significant increase in demand in England, with 53% of homebuyers looking to purchase a new build property (up by 29% in the last two years). Similarly, of those looking to buy in London in 2024, 29% reported they were looking for a new build.
On average, 43% of those aged 19-25 wanted to buy a new build property last year. Interestingly, it was baby boomers that came out on top, with 46% of those aged 54-65 looking to purchase new. Interest in new builds remained at a similar level for those in the 24-35, 34-45, and 44-55 age brackets, with a median percentage of 33%.
Younger generations (namely, Generation Z and millennials), are typically more tech-savvy and environmentally conscious, and are more likely to be attracted to the modern features, low maintenance, and eco-friendly aspects of new build properties. These developments are also renowned for creating a sense of community, making them particularly appealing to those in the younger age brackets looking to form social connections.
Meanwhile, baby boomers tend to be on fixed incomes and/or may be looking to reduce their overall living expenses, making the energy-efficiency of new builds more appealing. With many in this bracket experiencing significant life changes, such as retirement or downsizing, new builds offer a more modern, low-maintenance living environment that aligns with their changing needs.
The surge in demand among these demographics is testament to the high level of education around new build properties.
Government schemes like the First Homes initiative and the Lifetime ISA have made new builds more accessible, particularly for first time buyers.
“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,” comments 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.”
