New-build demand dips in Q3 as homebuyers sit tight ahead of autumn statement
The latest market analysis from Property Inspect has found that fewer than one in five new homes are currently securing a buyer, with homebuyer demand for new-build properties falling on both a quarterly and annual basis.
Property Inspect analysed current market listings looking at what proportion of new-build properties are already marked as sold subject to contract to reveal how homebuyer appetites for new homes have shifted on a quarterly basis.
The research shows that across Great Britain, new-build buyer demand was muted in Q3, with just 17.7% of all new homes listed for sale having found a buyer. This marked a 0.5% reduction on the previous quarter, with demand also down 1.1% year on year.
Demand was at its weakest in Newcastle in Q3, where just 4.5% of new-build stock had found a buyer. Liverpool sits only marginally higher at 4.8%, while Aberdeen (6.0%), Swansea (6.4%) and Leeds (9.3%) also rank amongst the coldest spots for new-build homebuyer demand.
When compared to Q2, Portsmouth saw the sharpest quarterly decline, with demand falling by 6.3% in Q3, while Glasgow was down 2.7%, Newcastle by 2.0%, and Edinburgh by 1.5%. London has also cooled slightly, slipping by 0.5%.
However, there remain pockets of resilience in the market. Southampton leads the way with 40.3% of new-build homes already under offer, followed by Sheffield at 33.1%, Bournemouth at 22.6%, Bristol at 21.8%, and Portsmouth at 21.7% despite its recent quarterly fall.
Sheffield also tops the table for quarterly growth, up 12.5%, while Bournemouth climbed by 7.7%, Plymouth by 6.1%, Swansea by 5.3%, and Southampton by 5.0%.
Sián Hemming-Metcalfe, Operations Director at Property Inspect, commented:
“Buyer demand for new-build homes has undoubtedly cooled in recent months, with fewer than one in five finding a buyer.
Rising borrowing costs, affordability pressures and the uncertainty surrounding government housing policy ahead of the Autumn Statement have all combined to make purchasers more cautious. With new-builds commanding a strong premium versus regular housing stock, it stands to reason that the new homes sector will be more vulnerable to these market influences.
However, the picture isn’t entirely negative. Cities such as Sheffield and Southampton demonstrate that appetite for quality new-build stock remains strong when the right product is delivered.
This underlines that consistency, compliance and condition are more important than ever. At Property Inspect, we’re helping developers and agents meet these expectations with smarter inspection and reporting tools that ensure new homes come to market at the highest standard, helping to bolster buyer confidence even in more cautious times.”
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