New home demand hits record high
Data release today in the New Homes Index reveals that new home buyer demand across Britain has reached an all-time peak as a record-breaking total of 153,472 buyer searches are recorded during May. A sign that, as we emerge from COVID restrictions and flexible working patterns are confirmed as here to stay, home buyers are looking to upgrade to meet their changing space and lifestyle requirements.
National average price of new home property coming to market is £326,660 – a slight drop from £330,463 in April (-1%).
May resulted in a record-breaking total of 153,472 national new home buyer searches. During the first two months of Q2 total new home buyer searches demonstrate an increase of 58,598 (+62.7%) on Q1, with June remaining.
Top three new home demand areas during May:
South East of England has demonstrated the most buyer demand during May 2021, achieving 28,920 new home buyer searches during May 2021.
London maintains its place in the top three for new home buyer demand, dropping from first place in April. During May London received 19,340 new home buyer searches.
West Midlands achieved 19,295 new home buyer searches during May 2021, placing it in the top three for the first time in 2021.
Daniel Hill, Managing Director, WhatHouse? comments:
“Q2 is on track to break new home demand records as we track 153,472 buyer demand searches during May, already up 62.7% on Q1 combined. When we consider that nearly all of Britain’s top firms have announced they’re planning a flexible work-from-home model following the Covid lockdown it’s no surprise that changing space requirements continue to drive momentum.
The growth in demand for new homes, in particular luxury new homes, in the South East of England points to commuters stretching the ‘commute comfort zone’, now that a two or three day office week has become the norm. We are seeing a strong desire amongst new home buyers to move to bigger properties. Britain’s more northerly regions are also experiencing a surge as the West Midlands secures its place in the top three new home demand areas during May with 19,295 searches and a 7% increase in demand for luxury new homes”.
Stewart Baseley, Executive Chairman, House Builders Federation said:
“Demand for new build homes continues to remain extremely strong as it has done since the sales market reopened post lock down last Spring. Even with a lower proportion of homes being purchased with Help to Buy, builders in all price brackets are reporting very high levels of interest from consumers, demonstrating confidence in the product and the industry with consumers increasingly recognising the benefits of new homes over older properties. Many sites are forward sold with builders focussed on completing homes to meet the high demand levels. Decision makers in central and local government need to continue to work with the industry if supply is to meet demand and housing targets are to be met”.
Kindly shared by What House
Main article photo courtesy of Pixabay
