OUR REPORT: KEY TAKEAWAYS

The new build market has recovered well after the slowdown in construction during the initial lockdown. From here it has the opportunity to increase its market share by adapting design to meet changing preferences and appeal to a broader range of buyers. However, the market will need to adapt to the changes to Help to Buy.

1. Young families are the most common buyers of new homes and the greatest users of Help to Buy, making them the most exposed to the tapering and ending of the scheme. Providing family housing they can continue to afford in areas with good primary schools, play areas and parks will be important for attracting this group.
2. Singles and couples over 40 are the least common buyers of new homes. Low maintenance, energy-efficient homes close to health services appeal to many in this group. A further 8,700 homes a year could be sold if 10% of this market could be captured.
3. To be more resilient to changes in market conditions, developers could deliver a range of tenures including forward-funded build to rent homes and income-generating uses alongside homes for sale where appropriate.
4. Developments in the future will need to be energy-efficient, sustainable, mixed, flexible and well-connected places that promote health and wellbeing to meet buyers’ needs and Government targets. With higher ESG credentials there is greater investment potential, albeit providing all this will put some pressure on land values.
   
   

Since the market reopened after peak lockdown in May, the housing market has experienced a strong bounce in activity due to pent-up demand, buyers bringing forward their decision to move and the stamp duty holiday.

Although there is positive momentum at the moment, there are significant headwinds for the economy and employment market, changes to property preferences and the tapering and planned end to Help to Buy to contend with. How should the new build market adapt to be resilient in the future?

Our report examines brand new analysis of who currently buys new build homes and the potential to diversify the demographic of buyers (The right homes for different people), the benefits of delivering a range of tenures and financial options (The value of tenure and financial diversity), and how energy efficiency and sustainability are important to what we deliver in the future (The appeal of energy-efficient housing).

From here, the new build market has the opportunity to increase its share of sales by adapting new homes to meet the needs of buyers and delivering to a broader range of people, deliver more non-open market sale tenures, and consider ESG factors to deliver sustainability in the future.

Patrick Eve

Head of Regional Development

_{Read the articles within Spotlight: Delivering new homes resiliently below.}