New build homebuyer activity set to spike as busiest time of the year approaches

December 5, 2019
new build homes essex uk

The latest research by new homes specialist, Stone Real Estate, has revealed that the level of new build properties being sold accelerates as we head into December, while sales across the regular market drop a gear in the run-up to Christmas.

Stone Real Estate looked at the number of transactions across each area of the market over the last five years, what percentage of total transactions they accounted for in each year, and how this compared to the previous months.

The research shows that on average over the last five years, the number of new build transactions in December accounts for 11.9% of total new build transactions for the year. In contrast, the number of existing homes sold during the last month of the year accounted for just 8.2% of all sales on average.

What’s more, December is the only other month of the year where new build sales hit double-digits as a percentage of total yearly sales along with June, with both months consistently ranking as the busiest in the new build calendar over the last five years.

There is also a clear trend whereby the number of new-build sales falls considerably following the June peak and then slowly gains momentum heading towards Christmas. On the other hand, existing property sales tend to see a gradual decline from August and September heading into the festive season.

Founder and CEO of Stone Real Estate, Michael Stone, commented:

“The new build sector doesn’t come under the same seasonal strain when it comes to sales transactions when compared to the existing sector. This is largely because new build sales involve one buyer and on the other side of the coin you have a professional entity that continues to work right up until the Christmas break to get a sale over the line.

This should be the case with any good estate agent, however, as there is no lengthy chain to deal with or any of the other complications that can come with an existing property sale, the process is all the quicker. As a result, when the December rush to complete before or just after Christmas hits, the new build sector is much better placed to facilitate a greater number of sales despite the shorter time frame.

One common misconception is that Christmas is a great time to find a homebuyer bargain and while true to an extent, historically new build house prices tend to stand firm, and in many cases sit higher than many previous months in the year. That said, developers will often include some festive incentives to persuade homebuyers to take the plunge and this, of course, all helps favourably towards their end of year figures.”

Five Year Look
Sector
December Sales as a Percentage of Annual Sales
New Build Average
11.90%
Existing Average
8.20%
Date/Month
New Build Sales as % of All Yearly Sales
Existing Sales as % of All Yearly Sales
2014
2014-01-01
5.1%
7.4%
2014-02-01
6.1%
7.2%
2014-03-01
8.3%
7.3%
2014-04-01
7.3%
7.8%
2014-05-01
8.3%
8.5%
2014-06-01
13.4%
8.4%
2014-07-01
7.2%
9.4%
2014-08-01
7.6%
9.8%
2014-09-01
8.3%
8.6%
2014-10-01
8.5%
9.5%
2014-11-01
7.9%
8.1%
2014-12-01
12.0%
8.1%
2015
2015-01-01
4.6%
6.5%
2015-02-01
5.3%
6.5%
2015-03-01
8.4%
7.2%
2015-04-01
7.6%
7.0%
2015-05-01
8.9%
8.0%
2015-06-01
14.1%
8.6%
2015-07-01
8.0%
10.3%
2015-08-01
7.8%
9.3%
2015-09-01
8.9%
8.9%
2015-10-01
8.4%
10.0%
2015-11-01
7.5%
9.0%
2015-12-01
10.5%
8.8%
2016
2016-01-01
4.5%
7.0%
2016-02-01
5.1%
7.5%
2016-03-01
9.2%
13.6%
2016-04-01
7.4%
5.8%
2016-05-01
7.5%
6.7%
2016-06-01
12.5%
7.8%
2016-07-01
7.3%
9.0%
2016-08-01
7.5%
9.1%
2016-09-01
8.8%
8.6%
2016-10-01
8.4%
8.0%
2016-11-01
8.7%
8.3%
2016-12-01
13.2%
8.4%
2017
2017-01-01
5.0%
6.7%
2017-02-01
5.7%
7.0%
2017-03-01
9.3%
8.4%
2017-04-01
7.1%
7.2%
2017-05-01
8.2%
7.9%
2017-06-01
13.2%
9.2%
2017-07-01
6.9%
9.0%
2017-08-01
6.9%
9.7%
2017-09-01
8.6%
9.0%
2017-10-01
8.1%
8.9%
2017-11-01
8.6%
8.8%
2017-12-01
12.3%
8.2%
2018
2018-01-01
5.2%
7.0%
2018-02-01
6.2%
6.9%
2018-03-01
9.0%
7.9%
2018-04-01
6.9%
7.0%
2018-05-01
7.7%
8.1%
2018-06-01
13.9%
8.7%
2018-07-01
6.9%
9.0%
2018-08-01
7.4%
10.4%
2018-09-01
8.1%
8.2%
2018-10-01
8.2%
9.2%
2018-11-01
8.8%
9.8%
2018-12-01
11.7%
7.7%

Properganda PR

National and local media coverage for property businesses. Journo quotes delivered in minutes.

You May Also Enjoy

Estate Agent Talk

Closing the gap on client relationships and recommendations

New research from iamproperty has highlighted the growing disconnect between what buyers and sellers want from their agent and what they experience, which could be killing recommendations from happy clients. iamproperty’s quarterly consumer survey revealed that only a third of respondents (32%)¹ would recommend their agent following their experience. With many agents relying on recommendations…
Read More →
Estate Agent Talk

Northern Ireland to expect over 25,000 new home movers

Belfast-based estate agency John Minnis has revealed that Northern Ireland is to welcome an estimated 25,000- 30,000 new arrivals from the UK and Europe over the next five years, as migration to the region reaches its highest levels in more than a decade. Recent figures show that 11,700 people relocated from other parts of the…
Read More →
Breaking News

Red tape and rising costs stifling new-build availability across the capital

The latest analysis from London estate agent, Benham and Reeves, has revealed how protracted building timelines are preventing the capital’s housebuilders from delivering the level of new-build housing stock required to meet demand, with new homes currently accounting for just 7.5% of all properties listed for sale across London. Benham and Reeves analysed the latest…
Read More →
Estate Agent Talk

UK’s new wave of ‘second cities’ offers strongest yield growth for property investors

The latest research from West One Loans has found that whilst investors may continue to favour the nation’s key cities such as London, Birmingham, and Manchester, a new wave of ‘second cities’ is delivering the strongest growth in rental yields. These emerging markets are offering investors the chance to achieve attractive returns, driven by rising…
Read More →
Estate Agent Talk

Decline in change of use further constricting housing supply

Jonathan Samuels, CEO of Octane Capital, believes that a decline in conversion projects could ultimately prevent the Government from hitting its ambitious housing delivery targets, as the firm’s latest analysis has revealed that the number of homes created through change of use has fallen sharply in the last five years. Octane Capital analysed official Government…
Read More →
Rightmove logo
Breaking News

Annual price fall driven by south, which could be harder hit by rumoured property taxes

The average price of property coming to the market for sale rises by 0.4% (+£1,517) this month to £370,257. However, average new seller asking prices are now 0.1% below this time last year following several months of muted price growth The dip in annual prices is driven by London and the south, as the south…
Read More →