Households moving out of London new build homes are disproportionately likely to be families with children. This suggests we’re not building enough new homes that are suitable for those families.

You’d think the easiest way to find households that like to buy new build homes is to look at those households already living there. But only 16% of households moving from a London new build home move into another London new build. The majority move out, either into existing homes in London or out of London entirely.

Those households living in new build homes tend to be younger than those living in second hand properties; they’re less likely to have children and more likely to live near their place of work or study. Those moving out of new build homes tend to be older and have children. Nearly a third of households who moved out of a London new build property had children, double the proportion of households moving in. 32% of households leaving London new build were aged 40-55, compared to 22% moving in.

Why are these families more likely to leave new build? The types of properties they move to may provide a clue. Those households moving from new build to existing properties go to a home that’s 13% larger, on average. They also have incomes 10% higher on average than those households staying in new build. Almost a third of households moving from a new build London home to a second hand property have incomes greater than £100,000. This suggests either larger new build homes that are suitable for families don’t offer good value for money, or there simply aren’t enough of them available.

What does this mean for developers?

There is a group of households who we know like to live in new build properties – after all, they’re living there now. But as those households’ needs change, they can no longer find new build accommodation that suits them.

That means we should be building homes with access to outdoor space, ample storage, and child-friendly amenities. We need to design homes to support the needs of the community, and cater to these households.

_{Read the articles within Spotlight: The Missing Markets below.}