According to the Home Builders Federation survey, new build buyer confidence is at its highest since June 2017, having gone from being the second biggest constraint on development at the end of 2018 to the ninth (out of 15) at the beginning of this year.

This is borne out by the significant improvement in market sentiment we’ve seen in Q1 despite ongoing political uncertainty. Renewed interest isn’t yet translating into commitment though so what we are witnessing is cautious optimism.

Savills viewings and new applicants for new build homes grew by 35 per cent and 31 per cent respectively compared with the same period in 2018.

Although this jump has been spread across the country, it has not been universal. Areas which have experienced a particular uptick include London and its commuter belt as well as Glasgow and Edinburgh.

So what’s changed?  

Brexit fatigue accounts for a lot. There’s widespread recognition that Britain’s relationship with the EU isn’t likely to be resolved soon, so decisions to buy can’t be delayed indefinitely. The extended deadline of 31 October has released some pent-up buyer demand, providing the market with greater confidence.

Cost is also important which is why the greatest changes in activity have been concentrated in Scotland, for example, where price growth remains steady and houses are relatively affordable, and in London and the South East where there have been price corrections. 

In a price sensitive climate, a greater number of transactions are subject to reductions. Buyers seem to be responding to this pragmatic pricing and sales incentives in a needs-driven market.

Further information

Contact Savills Residential Development Sales