Home-buying statistics for 2023 show decrease in number of new-builds sold over years

The latest home-buying statistics for 2023 from Bird & Co. show decrease in number of new-builds sold over years.

2023 data from UK conveyancing solicitors, Bird & Co, examining internal property enquiries has uncovered some revealing statistics which reflect home buyer’s behaviour last year: a decrease in the interest of new-build property for 3 years running. 

The statistics show that there has been a slight decrease in the percentage of people who bought new builds vs old builds in 2023. This percentage also decreased in 2022.

The figures show:
    • 2021: 35%
    • 2022: 68%
    • 2023: 18%

Interest reached its peak in December, with 13.31% of enquiries regarding a new-build property. However, the average of around 11% in 2023 shows just 1 in 10 Bird & Co clients were of this nature.

This implies that, despite government initiatives to promote the construction of more new properties reflected in ONS statistics, interest in new-builds may not be as high as anticipated.

The statistics also indicate a stagnation in the number of first-time buyers in 2023, with 68% of enquiring buyers not in possession of a property already, a figure which has not changed since the turbulence post-Covid.

This factor could potentially explain the diminished interest in new-builds, which are typically an attractive option for many first-time buyers, given that several home-buying schemes are exclusively applicable to newly constructed properties.

It could also be down to the affordability of new homes, which has peaked in 2023, especially with mortgage rates at an all-time high.

Daniel Chard, Partner at Bird & Co, says:

“Constructing new homes loses its purpose if they remain unaffordable, particularly for aspiring first-time buyers striving to step onto the property ladder.

“The essence of promoting new developments should be rooted in accessibility, ensuring that the dream of home ownership is within reach for those embarking on this significant milestone.

“Otherwise, government aims of building homes and getting people onto the property ladder loses its true meaning, becoming a mere exercise in construction rather than a pathway to fostering inclusive and sustainable communities.

“Our insider stats demonstrate that, so far, current schemes are having minor impacts on the overall picture for first-time home buyers.

“Meanwhile, second-time buyers are still snapping up many properties and filling the market with more rental homes and business opportunities.”

Other key internal stats from 2023 included:
    • 68% of Bird & Co’s clients were first-time buyers – no change since 2022.
    • Just under 1 in 3 clients were buying their second (or more) property.
    • 78% of people buying were intending to use the property as their main residence, compared to 76% in 2022.

 

If you are looking to buy a property in 2024 and require a solicitor to get you started, Bird & Co can help.

If you are planning to purchase, sell or remortgage your home in 2024, then get in touch with Bird & Co’s conveyancing solicitors by emailing [email protected], or calling 01476 591711.

 

Kindly shared by Bird & Co. LLP