"The new build sector is becoming increasingly innovative, so it’s no surprise that demand for these types of properties is on the rise among homebuyers of all ages."
- Ben Thompson, deputy CEO at Mortgage Advice Bureau
Nearly half (48%) of homebuyers say they want to purchase a new build property, a 21% increase in those who wanted to buy a new build in 2022 and 2023, according to data from Mortgage Advice Bureau.
34% of those wanting to buy a new build in 2024 were those who currently owned a property but were looking to move home, closely followed by first-time buyers (33%). Meanwhile, only 14% of homebuyers who were looking to remortgage expressed a desire for a new build. The most marked increase in demand over the last two years can be seen in the first-time buyer market, having increased by 20% since 2022.
On average, 43% of those aged 19-25 wanted to buy a new build property last year. Interestingly, it was baby boomers that came out on top, with 46% of those aged 54-65 looking to purchase new. Interest in new builds remained at a similar level for those in the 24-35, 34-45, and 44-55 age brackets, with a median percentage of 33%.
Younger generations (namely, Generation Z and millennials) are more likely to be attracted to the modern features, low maintenance, and eco-friendly aspects of new build properties. These developments are also renowned for creating a sense of community, making them particularly appealing to those in the younger age brackets looking to form social connections.
Meanwhile, baby boomers tend to be on fixed incomes and/or may be looking to reduce their overall living expenses, making the energy-efficiency of new builds more appealing. With many in this bracket experiencing significant life changes, such as retirement or downsizing, new builds offer a more modern, low-maintenance living environment that aligns with their changing needs.
The surge in demand among these demographics is testament to the high level of education around new build properties. Government schemes like the First Homes initiative and the Lifetime ISA have made new builds more accessible, particularly for first-time buyers. Associations like the Home Builders Federation are also investing more in educational campaigns to inform prospective homebuyers about the benefits of new builds.
Furthermore, an increasing number of developers are offering incentive schemes to entice more homebuyers to purchase new. This includes contributions to the deposit, legal fees and stamp duty, to part exchange options and even carpets, appliances, and garden landscaping being included in the price of the property.
Ben Thompson, deputy CEO at Mortgage Advice Bureau, commented: “The new build sector is becoming increasingly innovative, so it’s no surprise that demand for these types of properties is on the rise among homebuyers of all ages.
“Our data - and wider economic conditions - indicate that buyer confidence in the new build market is on the rise, and I would hope this further encourages the government to significantly accelerate the level of housebuilding in the UK."
